India - Chandigarh administration’s decision to impose a 4% Value Added Tax on poultry feed and poultry feed supplements has had an adverse affect on poultry industry, with industrialists planning to move out of the city to escape the tax.
Submitting a memorandum to UT Administrator General (Retd) S F Rodrigues, the Chandigarh Poultry Medicine and Supplements Dealers’ Association questioned the reasoning behind the new tax, while poultry feed and poultry feed supplements remain tax free in all the states of the country.
"The dealers of poultry feed and its supplements are also dealing in poultry medicines and vaccines and are paying a sizeable tax at the rate of four per cent to the administration. In case, 4% VAT on poultry feed and its supplements is not withdrawn, dealers will shift to neighbouring states of Punjab, Haryana and Himachal Pradesh. This would result in loss of revenue to the administration, already being paid by the dealers on poultry medicine and vaccines," the memorandum reads.
"We may also add here that our customers are poultry farmers who purchase feed and supplements from us for use in their farms and these are not meant for any resale. It is prayed that poultry feed and its supplements be exempted from VAT as per the corresponding entries of other states as to ensure uniformity in the VAT throughout the country," the memorandum adds.
Yash Paul, a member of the association, responded saying "We have not done any business since December 24, ever since the notification in this regard was issued. In case, the administration does not roll back its decision, we shall be left with no alternative but to shift our industry out of Chandigarh, as our competitors in Barwala and Mohali would sell the same feed and supplements at cheaper prices."