The Hindu Business Line : VAT woes for poultry sector

The industry is worried that Kerala's notification on VAT has excluded poultry from the list of exemption categories, though other food and animal products/items under entry No. 29 are exempt.

The Poultry Development Promotion Council (PDPC), which is promoting the cause of the broiler sector within the poultry industry, has noted that entry No. 29 of the first schedule has, however, exempted meat, fish, egg and livestock, and other items such as vegetables and fruits.

The broiler is neither exempt nor has it been put under items taxable at 4 per cent rate, which would mean that it would be taxed at 12.5 per cent.

This would ruin the State poultry industry, the PDPC said in a statement.

At present, poultry reared within Kerala is exempt from sales tax, but chickens imported from outside the State are subject to an 8 per cent entry tax and a 15 per cent surcharge.

According to PDPC, no State except Kerala has ever imposed sales tax on chicken, treating it on a par with other livestock.

But by excluding broiler from the list of exempted items, the State would be taxing even the State's poultry farmers, who were hitherto exempted from tax by virtue of a government notification.

The PDPC has appealed to the Kerala Government to exempt the poultry from the purview of sales tax.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Caring for the crop

Rubber rules firm on continuous buying

Tata Tea registers new firm for estates' transfer

Tiding over

World grain meet to discuss free trade

Coir exports set to top Rs 450-cr target

KCMA plans to strengthen cashew industry in State

Govt scraps cess on coffee exports

AP to monitor tobacco market

VAT woes for poultry sector

Egg rates cut by 5 paise

Export cess hits chilli, turmeric

Group to seek timeframe for cutting farm export subsidies: Kamal Nath

Drought — AP opposition stages walkout