Poultry farmers want 15% VAT on imported day-old chicks scrapped

The Dormaa Poultry Farmers Association has appealed to the government to waive the new 15 per cent Value Added Tax(VAT) imposed on imported day-old chicks.

The association pleaded with the government to maintain the old tax of five per cent and scrap the new 15 per cent VAT rate it has started implementing since the beginning of March, this year.

The Chairman of the association, Nana Dei Kusi made the appeal at a press conference at Dormaa-Ahenkro to express the displeasure of poultry farmers about the imposition of the new tax.

Nana Kusi said poultry farmers were worried because the government failed to consult them as major stakeholders before the implementation of the VAT on day-old chicks as contained in the 2018 budget.

High productivity
On why the poultry farmers preferred foreign day-old chicks, he enumerated a number of reasons including low mortality rate, higher productivity rate, low expenditure and budget on drugs and the quick response to treatment as compared to local day-old chicks, as factors that influenced their choice.

The imposition of 15 per cent tax, according to Nana Kusi, would become a huge burden on poultry farmers to the extent that it could cause farmers to restrict the number of birds they import.

Nana Kusi said, if that happened, poultry farmers would have no choice but lay off some of their workers.

The Dormaa area in the Brong Ahafo region is noted for poultry production and a significant contribution to the local economy.

Traders from all parts of the country visit the area daily to buy eggs and other poultry products.