Office bearers of the Pakistan Poultry Association (PPA) have raised serious concerns over the government’s decision to retain a Federal Excise Duty (FED) of Rs10 on day-old chicks, warning that the move could destabilize the poultry industry and threaten national food security.
Speaking to the media on Wednesday, PPA Chairman Abdul Basit said the levy is a punitive and regressive measure imposed at the very start of the poultry production cycle. He explained that the added cost has forced breeders and hatcheries to divert fertile eggs toward the table-egg market instead of incubation, as margins have come under severe pressure.
Due to the biological production cycle of poultry, Basit cautioned that lower chick placement will translate into a shortage of chicken meat within six to eight weeks. This is likely to push up retail prices and limit access to affordable animal protein, particularly for low-income households that rely on chicken as a staple food.
Punjab, which serves as the backbone of Pakistan’s poultry sector, is expected to bear the brunt of the policy. The PPA warned that continued enforcement of the FED could force small and medium-sized poultry farms out of business, leading to job losses and reduced rural incomes.
Basit further noted that excise duty cannot legally be imposed on live animals, arguing that the tax lacks statutory backing. He added that the industry is already grappling with high electricity tariffs and soaring feed costs, exacerbated by restrictions on soybean imports.
The PPA urged the government to immediately withdraw the FED to protect poultry production, employment, and food affordability across Pakistan.