The National Board of Revenue has waived the value-added tax on local production and supply of di-calcium phosphate to poultry, dairy and animal health companies.
The NBR’s VAT wing issued a statutory regulatory order on February 15 offering the exemption to the sectors on payment of 15 per cent VAT on the product, as it was an important component of poultry and dairy feeds.
According to the SRO, the VAT exemption will be applicable only if the producers sell the product to poultry, dairy farm and animal health companies registered with the Department of Livestock Services.
Manufacturers or suppliers of DCP will have to submit a written statement to the local VAT office containing the name of buyers and quantity of product supplied.
The product packet must have a label reading ‘only for use in poultry feed and dairy feed’ in a visible part of the packaging.
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