The residents of Karachi are bracing for an impending rise in the prices of chicken meat and eggs due to expected cost increases in poultry farming. Market sources indicate that chicken meat prices could surge by Rs 100 to Rs 150 per kilogram, pushing the current rate of Rs 480 per kg up to a range of Rs 580 to Rs 630 per kg. Similarly, the price of eggs is projected to climb by Rs 50 to Rs 70 per dozen, potentially increasing from the current Rs 240 per dozen to between Rs 290 and Rs 310 per dozen.
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This anticipated price hike follows a recent decision by the Senate Standing Committee on Finance to eliminate tax exemptions on chicken feed. Officials from the Federal Board of Revenue (FBR) announced during a committee meeting that the 10 percent tax exemption on chicken feed would be discontinued as part of broader efforts to impose a 10 percent sales tax on livestock feed, including feed for cows and buffaloes. This policy change is anticipated to generate an additional Rs 47 billion in sales tax revenue for the government.
While this move aims to boost government revenue, it will likely raise production costs for poultry farmers. These increased costs are expected to be transferred to consumers, contributing to the anticipated price hikes in chicken meat and eggs. The prospect of higher food prices has sparked concern among Karachi’s residents, many of whom are already grappling with the challenges of high inflation. The added strain of more expensive staple items like chicken and eggs is expected to further burden household budgets, prompting worries about affordability and economic stability.
