THRISSUR: The poultry farmers and traders in Kerala have welcomed the GST which has removed the 14.5 per cent luxury tax on chicken which existed only in the state. This will promote poultry framing in the state in a big way, they said. "Kerala was the only state to have luxury tax on chicken and many were reluctant to start poultry farms fearing sales tax raids by officials. Though small poultry farmers were exempted from luxury tax, often the commercial tax officials raided their farms and imposed penalty citing that they were doing business with a turnover of more than Rs 10 lakh per annun," Mr S. Promod, joint secretary of Kerala Poultry Farmers and Traders Samiti, said.
With no tax on chicken from July 1, more persons would start farms and chicken could be exported, he said. Before the Kerala General Sale Tax (KGST) which imposed 8 per cent tax was introduced, chicken brought to Kerala was taxed for each load at the check post. After changing the VAT, the luxury tax was increased from 12 per cent to 13 and then to 14.5 per cent.
Mr Binny Emmitty, state president of the samiti, told DC that the Broiler Coordination Committee (BCC) based at Palladam at Tirupur in Tamil Nadu decided the daily rate in Tamil Nadu, Kerala and Karnataka. "With the production expected to go up with the GST, the price will come down by Rs 20 a kg initially and by Rs 70 per kg later," Mr Emmitty said.
