May 11, 2006	Thursday	Rabi-us-Sani 12, 1427

ISLAMABAD, May 10: The Federal Poultry Board on Tuesday approved proposals for next budget including Rs5bn in interest-free loans to farm owners affected by bird flu crisis and exemption of various inputs from import duty and sales tax to revive the industry.

Presided over by Federal Minister for Food, Agriculture and Livestock, Sikandar Hayat Bosan, the board proposed up to Rs1m interest-free loans by government to small and medium-sized poultry farm owners for 10 years. It asked the Zari Taraqiati Bank Ltd (ZTBL) to approve such loans on priority basis.

Officials of the Central Board of Revenue (CBR), however, rejected a proposal of the Pakistan Poultry Association demanding income tax exemption for those associated with the industry. The association was of the view that the industry had suffered Rs9bn losses since the last week of February when H5N1 virus was reported in Charsadda. Since then half of the poultry farms had been closed, which deserved income tax exemption.

The board proposed special loaning facilities to be provided on low mark-up for establishment of egg processing plants. It sought special rebate for aid on electronic and print media to educate and create awareness in the masses about bird flu and health.

The meeting was informed that H-5 vaccinations were a must within the radius of 50-km in areas where H5N1 virus attacks were reported. Unfortunately, public sector institutes in Lahore, Peshawar and Karachi were yet to start producing such vaccines owing to which the industry was totally dependent on imported vaccines.

Therefore, it demanded elimination of the 15 per cent import duty on all types of vaccines.

It also stressed the need for law making to ensure registration of all poultry farms and upgradation of existing ones with bio-security facilities. The board was of the view that only district coordination officers (DCOs) or other authorised officers should award no objection certificates (NOC) to new farms.

“Poultry farms must be built at a distance of at least one kilometre from one another and must possess fortification to check the movement of humans and animals. They must posses bio-security rooms at the gate and a mortality pit in the premises of the farm”, the meeting observed.

The board criticised the issuance of challans to a number of poultry farms in Abbotabad and Mansehra districts by the labour department under Labour Act and Standing Ordinance, 1968. It stressed that poultry farming fall within the regime of animal and agriculture and must operate under the food and agriculture ministries.

The board demanded the Water and Power Development Authority (Wapda) to provide subsidised electricity to poultry farm houses instead of commercial rates.

It also sought removal of the present 25 per cent import duty and 15 per cent sales tax on prefabricated poultry houses especially insulated poultry houses made from steel/aluminium. It was of the view that the government had already exempted green houses from import duty and sales tax to give relief to horticulture sector. The concession would help in the speedy construction of poultry farms in the earthquake-hit areas, it observed.

The meeting observed that at present the government had imposed 10 per cent import duty and 15 per cent sales tax on evaporative cooling system, which was an absolute requirement of the modern poultry farming. The duty and sales tax must be withdrawn to make the poultry business cost-effective.

The meeting, where officials of the ministry of finance were also present, observed that Pakistan imported soybean meal (SBM) from India through trains which often reached here with delays. It demanded the government to allow the import of SBM from India through trucks to avoid delays.