LAHORE:
Office bearers of the Pakistan Poultry Association (PPA) have expressed concern over the government’s decision to retain a Federal Excise Duty (FED) of Rs10 on day-old chicks, calling it a punitive and regressive measure that threatens the poultry sector and national food security.
PPA Chairman Abdul Basit, along with other office bearers, told the media on Wednesday that imposing FED at the start of the production cycle has increased input costs, forcing breeders and hatcheries to divert fertile eggs for sale as table eggs instead of incubation. Given the biological cycle of poultry, reduced chick placement will result in a shortage of chicken meat within six to eight weeks, triggering higher retail prices and restricting access to affordable animal protein for low-income households.
Punjab, the backbone of Pakistan’s poultry industry, will be particularly affected. Continued enforcement of the tax is likely to push small and medium farms out of business, causing job losses and falling rural incomes. The PPA said Excise Duty cannot be levied on live animals, as it lacks statutory backing in Pakistan.
Basit described the levy as a regressive tax that strikes at the foundation of poultry production. “Imposing a Rs10 FED on a day-old chick is a catastrophic decision and reflects a misunderstanding of the industry’s dynamics. This is not merely a tax on farmers; it is effectively a tax on the food plate of every Pakistani who depends on chicken as the most affordable source of animal protein,” he said.
PPA office bearers said the industry is already under pressure due to high electricity tariffs and escalating feed costs, particularly because of restrictions on soybean imports.
