The Pakistan Poultry Association (PPA) has voiced deep disappointment over the federal budget 2026-27, asserting that the poultry sector received no meaningful fiscal relief despite repeated government assurances. In a statement issued on Saturday, the association warned that continued burdensome taxes on key production inputs will further increase poultry product costs, discourage investment, undermine export competitiveness, and pose serious threats to Pakistan's food security.
Industry Leaders Call for Tax Review
In a joint statement, PPA Chairman Abdul Basit, Vice Chairman Malik Muhammad Sharif, and 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 finalized by parliament. They emphasized that the poultry industry is one of Pakistan's largest and most organized 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.
Key Tax Issues Highlighted
The association regretted that instead of encouraging investment and growth, the budget retained several distortionary taxes that inflate production costs and weaken competitiveness. Critical issues requiring urgent intervention include:
- Federal Excise Duty on Chicks: The continuation of Rs10 federal excise duty on every day-old chick remains economically unjustified. Since day-old chicks represent the first production stage, the tax directly increases farming costs, ultimately raising consumer prices.
- Sales Tax on Processed Chicken: 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 and value-added food production, places compliant businesses at a disadvantage, and makes safe processed poultry products less affordable.
- Import Duties on Feed Ingredients: PPA expressed concern over continued import duties and 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 and eggs.
Backbone of Affordable Protein Supply
"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."
