The Federal Board of Revenue has granted sales tax exemption on the import of machinery used by poultry industry at any stage under SRO 727(I)/2011. Sources told Business Recorder here on Wednesday that since poultry industry has been engaged in business of production of eggs and meats, therefore, the benefits of exemption from sales tax under SRO727(1)/2011 dated August 1, 2011 was available to the machinery to be used in any stage/phase of the poultry industry.

In this regard, the FBR has already issued a clarification to the Pakistan Poultry Association. Sources said that SRO727(1)/2011 deals with the exemption of sales tax on the import of plant and machinery not manufactured locally and having no compatible local substitutes subject to the fulfilment of laid down conditions. Sources said that the issue of storage poultry feed silos has also been examined by the Board. It is pointed out that poultry feed silos are a pre-requisite of poultry industry and are used by the Poultry Feed Mills for the production of eggs and meat.

Copyright Business Recorder, 2012