LAHORE: The Pakistan Poultry Association (PPA) has expressed serious concern over the government’s decision to retain a Federal Excise Duty (FED) of Rs. 10 on day-old chicks, terming it a punitive and regressive measure that threatens the sustainability of the poultry sector and the food security of millions of Pakistanis.
The Association warned that the imposition of FED at the very start of the production cycle has sharply increased input costs, forcing many breeders and hatcheries to divert fertile eggs for sale as table eggs instead of incubation. Given the biological production cycle of poultry, reduced chick placement today will inevitably result in a severe shortage of chicken meat within the next 6 to 8 weeks. This shortage is expected to trigger unprecedented spikes in retail chicken prices, further restricting access to affordable animal protein for low-income households and exacerbating nutritional insecurity.
Punjab, which serves as the backbone of Pakistan’s poultry industry, will be particularly affected. Continued enforcement of such regressive taxation is likely to push small and medium poultry farms out of business, leading to widespread job losses, declining rural incomes, and significant economic distress across farming communities. The PPA further emphasized that under the prevailing legal framework, Federal Excise Duty cannot be levied on the production or sale of live animals, as such taxation lacks statutory backing and is inconsistent with the Constitution of Pakistan.
PPA issued this statement during media briefing addressed by its Chairman Abdul Basit, Group Leader Dr F M Sabir, Vice Chairman Malik Muhammad Sharif, along with senior industry representatives Khalique Arshad and Dr Sajjad Arshad.
Addressing the media, PPA Chairman Abdul Basit described the levy as a regressive tax that strikes at the very foundation of poultry production. “Imposing a Rs. 10 FED on a day-old chick is a catastrophic decision and reflects a fundamental misunderstanding of the poultry 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 stated.
Group Leader and CEO of Sabir Poultry, Dr F M Sabir, highlighted that the industry is already under immense pressure due to high electricity tariffs and escalating feed costs, particularly stemming from restrictions on soybean imports.
The poultry sector contributes over 40 percent of Pakistan’s total meat consumption and is central to national food security. By imposing a fixed duty at the hatchery level, the government is driving small-scale farmers out of the market, which will inevitably lead to supply shortages and sharp increases in consumer prices,” he warned.
Vice Chairman PPA Malik Muhammad Sharif noted that the industry is facing a severe survival crisis. He pointed out that production costs have risen to Rs. 350–380 per kilogram, while market volatility often prevents farmers from recovering these costs.
Senior industry representatives Khalique Arshad and Dr. Sajjad Arshad urged the Federal Board of Revenue (FBR) and the Ministry of Finance to immediately reconsider the levy. They noted that even international stakeholders, including the IMF, have previously questioned narrowly targeted industry taxes that neither broaden the tax base nor support essential food production.
The Association also appealed the Prime Minister and the Federal Finance Minister to initiate meaningful dialogue with industry stakeholders and to formulate a stable, growth-oriented policy framework.
Copyright Business Recorder, 2026
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