PPA condemns imposition of Rs10 FED on day-old chick

Business Recorder

15-07-2025

LAHORE: Vehemently condemning the government's decision to impose a federal excise duty (FED) of Rs 10 on each day-old chick, the Pakistan Poultry Association has warned that this will cripple the already struggling sector.
PPA Chairman Abdul Basit while speaking on behalf of the entire poultry industry at a presser on Monday said this ill-conceived measure will cripple the already struggling sector and lead to severe difficulties for consumers seeking affordable animal protein.
'This imposition of Rs 10 FED on day-old chicks is a catastrophic decision that demonstrates a profound lack of understanding of the poultry industry's dynamics and its vital role in national food security,' stated Abdul Basit and added such a punitive tax at the very nascent stage of production will inevitably lead to a sharp increase in the cost of poultry products, which will be unaffordable for the common man.
He said the poultry industry in Pakistan has been a cornerstone of economic growth and a crucial provider of affordable protein to millions. Poultry is one of the largest industry of Pakistan, growing at an annual rate of 8-10%. However, it has consistently grappled with various challenges, including high input costs, disease outbreaks, and an often-unfavourable tax regime.
Chairman Abdul Basit highlighted the direct and immediate consequences of this FED; the day-old chicks will significantly escalate the cost of production. This will force a large number of poultry farmers and entrepreneurs out of business, leading to widespread closures and unemployment in the rural economy.
The will increase cost of production and will directly translate into higher prices for chicken meat and eggs in the market.
At a time when inflation is already a major concern for the average Pakistani household, this tax will place an unbearable burden on consumers, pushing essential protein sources out of their reach, Basit said.
The poultry sector is a major check against inflation and plays a critical role in providing low-cost animal protein. By making poultry products expensive, the government is jeopardizing the nation's food security and nutritional well-being, particularly for low-income propels.
Instead of supporting an industry that provides livelihoods to millions and affordable food to the masses, this tax will stifle investment, discourage expansion, and ultimately lead to a contraction of the poultry sector.
'We have consistently advocated for policies that support the growth and sustainability of the poultry industry, which in turn benefits the entire nation,' Chairman Abdul Basit added. 'Instead, this new tax is a regressive step that will undo years of progress and push the industry to the brink of collapse.'
The Pakistan Poultry Association urged the government to immediately reconsider and withdraw the federal excise duty on day-old chicks. Basit emphasized the need for a collaborative approach between the government and industry stakeholders to formulate policies that are conducive to growth, ensure affordability for consumers, and safeguard the future of Pakistan's vital poultry sector.
Copyright Business Recorder, 2025