Chandigarh. The administration's decision to impose a four per cent Value Added Tax on poultry feed and its supplements has affected the 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 rued the poultry feed and its feed supplements are 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 In case, four per cent VAT on poultry feed and its supplements is not withdrawn, dealers will shift to neighbouring states of Punjab, Haryana and Himachal Pradesh.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 ourcustomers are poultry farmers who purchase feed and supplements from usfor use in their farms and these are not meant for any resale. It isprayed that poultry feed and its supplements be exempted from VAT asper the corresponding entries of other states as to ensure uniformityin the VAT throughout the country," the memorandum adds.
While talking to Newsline, Yash Paul, a member of the association, said, "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 Mohaliwould sell the same feed and supplements at cheaper prices."
Source: Indian Express
