The Hindu Business Line : VAT hits live chicken exports to Kerala

TURNING DEAR: Chickens resting at a broiler farm in Perinjanam in Kerala's Thrissur district. With the implementation of the value-added tax system, poultry meat prices in the State have shot up on decline in arrivals of broiler chicken. About 500 loads of chicken come from the neighbouring States such as Tamil Nadu and the entrance tax amounts to Rs 4 lakh a day at various checkposts. The tax on chicken is now 12.5 per cent, up from 9.2 per cent before VAT was implemented, and this has led to a general discontent among poultry farmers. — K.K. Mustafah

Coimbatore , April 5

LIVE chicken movement from Tamil Nadu to Kerala has been affected for the last one week in view of the poultry traders objecting to 12.5 per cent value- added tax (VAT) being imposed by Kerala on live birds brought from Tamil Nadu.

According to broiler industry sources here, with Kerala switching over to VAT regime, poultry traders in that State who source live birds from Tamil Nadu have stopped buying.

"There is practically no transport of live birds from Coimbatore into Kerala happening for the past one week,'' said Mr Lakshmanan, an integrated broiler producer and President of the State Broiler Coordination Committee.

The accumulation of live bird stocks, according to him, puts price pressure for the growers and the trade.

In normal circumstances, an estimated 15-20-lakh live chicken is moved every week from Tamil Nadu into Kerala.

Under the new VAT regime notified by the Kerala Government, food/animal products figure in 29 exempted list of items, while poultry doesn't, the traders here say.

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VAT hits live chicken exports to Kerala