Karachi, April 17, 2025:: The Federal Board of Revenue (FBR) has announced a massive sales tax exemption worth Rs81 billion for the local supply of poultry feed.
The measure, revealed in the FBR’s annual tax expenditure report, highlights the government’s effort to promote affordability and ensure food security.
According to the report, the exemption was granted under the Sixth Schedule of the Sales Tax Act, 1990. It covers not only poultry feed but also extends to cattle feed and essential ingredients such as sunflower seed meal, canola seed meal, and rape seed meal. These inputs are critical for maintaining healthy livestock and poultry populations across the country.
The FBR clarified that this tax exemption on poultry feed was introduced to benefit both poultry producers and the general population. By reducing the input cost for poultry farming, the initiative was intended to lower production expenses and help stabilize market prices of poultry products, particularly chicken and eggs.
Despite the hefty tax relief provided to the poultry industry, retail prices of poultry meat have continued to rise. According to the latest data released by the Pakistan Bureau of Statistics (PBS), the price of live broiler chicken has increased by 6.43%, climbing to Rs535.48 per kilogram in 2025 from Rs462.65 per kilogram a year earlier.
This contradiction between tax exemption benefits and rising poultry prices has raised concerns among consumers and policymakers alike. Many are questioning whether the poultry industry is passing on the benefits of the exemption to end users or retaining the margin amid rising costs and market inefficiencies.
The exemption, however, reflects the government’s broader strategy to support agricultural productivity and ease inflationary pressures in the food sector. The poultry industry remains one of the largest and fastest-growing segments of Pakistan’s agriculture sector, and the exemption is expected to encourage sustained investment and growth.
Going forward, the FBR may evaluate the effectiveness of such exemptions and whether they are translating into meaningful relief for consumers, particularly in the essential poultry segment.