Tax Hygiene Uncalled For On Packaged Food Products: PHD Chamber

Mr. Vijay Sardana, Co-Chairman, Agri Business Committee of the PHD Chamber of Commerce and Industry on Tuesday asked the state governments to stop levying packaged food products with multiple taxes which are imposed on hygiene in poultry sector to enable India realize the real potential of food processing industry including that of poultry products.

Addressing a roundtable on Poultry Marketing under aegis of the PHD Chamber of Commerce and Industry, Mr. Sardana said that nowhere in the world hygiene tax was imposed on packaged food products barring India. This is leading to health and food safety issues and preventing investments in India's infrastructure sector.

 

In case, if it wanted its food processing industry to grow to its real potential, such illogical measures need to be shunned, especially when the unpacked food products are allowed to be sold off without any taxes he cautioned pointing out that food safety can not be compromised.

Different states levy packaged food products with different slabs of tax hygiene ranging from 10 per cent to over 25 per cent without consulting the industry which not only discourage the entrepreneurs but also disconnect them with the consumers in the entire value chain of the industry, pointed out Mr. Sardana.

He prescribed a multi-pronged strategy to market poultry products which include a suitable connect between farmers, middle men and retailer so that each stake holder's share of profit is protected in an equitable manner. Co-operative market approach was also recommended by him to sell off meat and poultry products.

Global CEO AB Agri, Mr. David Yiend and Mr. Simon, representing AB Agri also shared their global experience with Indian poultry industry also stressing that time has come to look at livestock issues seriously in India.

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