Poultry sector gets no relief in budget

Rs10 FED on day-old chicks, 18% sales tax on processed chicken to raise costs

The Pakistan Poultry Association (PPA) has expressed profound disappointment over the federal budget 2026-27. stating that despite repeated assurances from the government, the poultry sector has received no meaningful fiscal relief.

In a statement issued on Saturday, the association warned that continuation of burdensome taxes on key production inputs will further increase the cost of poultry products, discourage investment, undermine export competitiveness. pose serious risks to Pakistan's food security.

In a joint statement, PPA Chairman Abdul Basit, Vice Chairman Malik Muhammad Sharif,. senior members Dr FM Sabir and Khaleeque Arshad urged the government to immediately review taxation measures affecting the poultry industry before the Finance Bill is finalised by parliament.

The poultry industry is one of Pakistan's largest. most organised agro-based sectors, contributing significantly to food security, employment generation, rural development and the supply of affordable animal protein. The sector also has substantial untapped potential to generate foreign exchange through exports of value-added poultry products.

However, they regretted that instead of encouraging investment. growth, the budget has retained several distortionary taxes that inflate production costs and weaken competitiveness.

The association highlighted critical issues requiring urgent intervention. The continuation of Rs10 federal excise duty on every day-old chick remains economically unjustified. Since day-old chicks represent the first stage of production, the tax directly increases farming costs, ultimately raising consumer prices.

The association strongly opposed the 18% sales tax on processed chicken. describing it as a major disincentive to investment in modern processing facilities. The tax discourages hygienic. value-added food production, places compliant businesses at a disadvantage and makes safe processed poultry products less affordable.

PPA also expressed concern over continued import duties. sales taxes on essential feed ingredients, including soybean meal, vitamins, minerals and amino acids. Since feed accounts for nearly 70-75% of total production costs, higher taxation on these inputs significantly increases the cost of poultry meat. eggs.

"The poultry sector is the backbone of Pakistan's affordable animal protein supply," the leadership stated. "Over the past several months, we remained engaged with policymakers, who repeatedly assured us that these anomalies would be addressed. Unfortunately, the final budget has failed to deliver on those commitments."

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