KARACHI: The Pakistan Poultry Association (PPA) has raised serious concerns over the government’s decision to maintain a Federal Excise Duty (FED) of Rs10 on day-old chicks, warning that the move could destabilize the poultry sector and threaten national food security.
PPA Chairman Abdul Basit, speaking alongside other association officials, stated that applying the FED at the very start of the production chain has increased operational costs for breeders and hatcheries. Many are now selling fertile eggs as table eggs instead of using them for incubation. Given the natural growth cycle of poultry, this reduction in chick placement is expected to cause a shortage of chicken meat in six to eight weeks, pushing retail prices higher and limiting access to affordable protein for low-income households.
The Punjab region, the heart of Pakistan’s poultry industry, is expected to bear the brunt of this tax. Small and medium-sized farms could be forced out of business, leading to job losses and lower rural incomes. The PPA also noted that imposing an excise duty on live animals lacks statutory support under Pakistani law.
Basit described the Rs10 levy as a regressive and damaging tax. “Taxing a day-old chick is not only misguided but threatens the entire supply of affordable animal protein in Pakistan. This decision impacts every Pakistani household that relies on chicken as a key source of nutrition,” he said.
The association further highlighted that the sector is already struggling with rising electricity bills and feed costs, worsened by import restrictions on soybeans, making the new levy even more burdensome.
