The Pakistan Poultry Association (PPA) has raised strong concerns over the government’s decision to maintain a Federal Excise Duty (FED) of Rs10 on day-old chicks, calling it a harmful measure that could severely impact the poultry industry and national food security.
PPA Chairman Abdul Basit, along with other office bearers, told the media on Wednesday that applying the FED at the very start of the production cycle has increased costs for breeders and hatcheries. This has forced many to sell fertile eggs as table eggs instead of incubating them. Due to the biological cycle of poultry, this reduction in chick placement is expected to lead to a shortage of chicken meat within six to eight weeks, causing higher retail prices and limiting access to affordable protein, particularly for low-income families.
Punjab, considered the backbone of Pakistan’s poultry sector, is expected to face the biggest impact. Small and medium farms may struggle to survive under the tax, potentially leading to job losses and reduced rural incomes. The PPA emphasized that Excise Duty cannot legally be applied to live animals in Pakistan, as it lacks statutory support.
Basit described the Rs10 levy on each day-old chick as a regressive tax that undermines the poultry industry. He stated, “This is not just a tax on farmers; it directly affects the food plate of every Pakistani relying on chicken as an affordable source of protein. Imposing a Rs10 FED on a chick is a catastrophic decision that shows a lack of understanding of the industry’s dynamics.”
PPA officials also highlighted that the sector is already under significant pressure due to high electricity tariffs and rising feed costs, worsened by restrictions on soybean imports. They warned that continuing this tax could destabilize the industry, reduce chick production, and ultimately threaten the nation’s access to affordable chicken, which is a key source of animal protein for millions.
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The association urged the government to reconsider the tax, calling for the removal of the Rs10 FED on chicks to protect farmers, maintain affordable poultry prices, and safeguard national food security.
