Although poultry farmers have expressed dissatisfaction over the decision, vegetable farmers, on the other hand, have expressed readiness to pay the tax. [break]
As per the policy, the committee will collect Rs 30,000 annually from hatchery and feed industries.
However, farmers raising less than 10,000 chickens will not come under the DDC tax net.
Farmers raising 10,000 to 20,000 chickens will have to pay Rs 6,000 annually in taxes and those raising 30,000 chickens will have to pay Rs 10,000 per year as local development tax.
The DDC can slap taxes of up to Rs 30,000 on farmers raising more than 100,000 chickens.
Poultry farmers, along with the Chitwan Chambers of Commerce and Industry, have protested the decision citing it would push the poultry industry to the verge of collapse. Entrepreneurs have also threatened to launch protests against the decision.
Bandhu Prasad Bastola, a local development officer, said it was not possible to carry out development activities in the district without imposing the taxes.
“In recent time, the district´s budget has been slashed leaving us with no option but to impose taxes, wherever genuine,” added he.
Chitwan is a leading district in poultry farming. The district boasts of large-scale poultry farms, including feeds and hatchery industries.
“We have considered several demands of farmers in the past but showing reluctance to pay taxes is not acceptable,” said Bastola. The DDC estimates collection of about Rs 4 million per year from taxes raised from the poultry sector.
Likewise, the committee has also decided to impose a tax of five paisa on per kg of fresh vegetables and fruits.
Chandra Man Shrestha, the chairman of Nepal Poultry Entrepreneurs Forum, said: “The decision of the DDC will hurt the entire poultry sector.”
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