Chicken Prices Hike as Govt Imposes New Tax

The federal government has approved new tax measures worth Rs36 billion, which are likely to impact various sectors, including poultry.

One of the most talked-about decisions is the Rs10 federal excise duty (FED) on day-old chicks. This move has sparked concern among poultry farmers, who warn that it could raise production costs and eventually push chicken prices higher for consumers.

The new tax package was introduced after the government unexpectedly raised public sector salaries by 10%, instead of the initially proposed 6%. Additionally, the tax on imported solar panels was lowered from 18% to 10%. These changes created a budget gap in the plan previously agreed upon with the International Monetary Fund (IMF).

According to the Federal Board of Revenue (FBR) chairman, “Six proposals were submitted, and the IMF approved three,” in response to the revenue shortfall.

Besides the poultry tax, other approved measures include:

• A 29% tax on corporate profits earned through mutual funds
• A 20% tax on income from government securities

Poultry sector stakeholders say the Rs10 FED on chicks will raise input costs and ultimately make chicken more expensive, impacting millions of consumers.