World meat industry news

Pork and poultry meat may rise in price in the Russian Federation due to claims against manufacturers of feed additives by the Federal Tax Service (FTS).

As follows from two decisions of the department in relation to the Tekhkorm company, which produces additives for farm birds and animals, the company is required to pay VAT for 2016-2021.

The fact is that the Federal Tax Service, following the results of the audit, added 1.06 billion rubles of VAT to the company. The tax officials decided that premixes and feed concentrates should have been taxed at a rate of 18-20% during the specified period, but instead the manufacturer paid for them at a preferential rate of 10%, just like feed.

The Federal Tax Service believes that these products are feed additives and "pharmacological products" that are not on the list for a reduced VAT rate, which is why additional charges were formed.

Representatives of Techkorm expressed the opinion that if the inspectorate applies this approach everywhere, then many small market participants will go bankrupt, and large ones will have to compensate for the costs by raising prices. Ultimately, all these factors will provoke an increase in the cost of meat.