Poultry and dairy feed manufacturers will not have to pay VAT on local production and supply of di-calcium phosphate (DCP), an important component of the feeds.
The National Board of Revenue (NBR) has waived the 15 per cent VAT on the product. The VAT wing of the board issued a Statutory Regulatory Order (SRO) dated February 15 last, making the waiver effective immediately.
However, the NBR tagged some conditions with the exemption - the feed producers are restricted to sell the input only to the poultry and dairy farms or animal health companies registered with the Livestock Department.
The producers will have to submit a written statement to the local VAT office on the quantity of DCP supplied to the farms or companies.
The packet of the DCP should have a label "only for using in poultry and dairy feeds' at a visible place to check abuse of the tax benefit in other sectors.
The producers will also have to submit a declaration to the local VAT offices on the probable quantity of the DCP to be supplied to the poultry and dairy farms.
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