ISLAMABAD, August 8, 2025 — The Federal Board of Revenue (FBR) has announced that the recently imposed Federal Excise Duty (FED) on day-old chicks (DOCs) will serve as a powerful tool to monitor production in Pakistan’s vast poultry sector.
Under the Finance Act, 2025, the FBR introduced a levy of Rs10 per DOC. Officials explained that this move is not simply about revenue collection; it is designed to create a transparent production record across the poultry supply chain. By applying FED at the earliest stage — the hatchery — the FBR can gauge the true volume of poultry production and curb underreporting, a long-standing challenge in this largely undocumented industry.
The decision comes despite the poultry sector enjoying massive tax exemptions in recent years. In its 2024 annual expenditure report, the FBR highlighted that local supply of poultry feed was granted sales tax exemptions worth Rs81 billion under the Sixth Schedule of the Sales Tax Act, 1990. These exemptions also cover cattle feed and key ingredients like sunflower seed meal, canola seed meal, and rape seed meal, essential for maintaining healthy livestock and poultry stocks nationwide.
However, tax relief has not translated into price stability. Over the past two years, retail poultry prices have surged. In April 2025, the Competition Commission of Pakistan (CCP) cracked down on alleged anti-competitive practices, slapping Rs155 million in penalties on eight major poultry hatcheries for cartelization and price manipulation of DOCs between 2019 and 2021.
According to the CCP, a suo motu investigation was triggered by a flood of consumer complaints over soaring DOC prices. Evidence revealed that leading poultry producers colluded to artificially inflate rates, undermining fair market competition.
With the FED now in place, the FBR aims to combine fiscal oversight with production tracking, ensuring both transparency and compliance in the poultry sector. Officials believe this measure will help dismantle informal practices while safeguarding consumer interests in a sector critical to Pakistan’s food supply.