Animal feed and raw soya bean have been exempted from sales tax to help stabilise the prices of essential food items such as chicken, eggs and beef.
The finance ministry said the decision was based on industry feedback that soya beans are a primary input in animal feed production.
For other raw materials used in animal feed, the ministry said it is reviewing the issue through discussions with the industry.
Earlier today, importers of commodities for animal feed urged the government to reconsider imposing sales tax on certain imported feed raw materials. The trade association said the tax could increase the cost of producing chicken, eggs, and meat.
Sales tax currently applies to about 30% of raw ingredients in animal feed, including soya bean, wheat pollard, canola meal, and vitamin premixes.
