Poultry industry left out of budget relief

ISLAMABAD: The Pakistan Poultry Association has voiced strong disappointment over the federal budget for 2026-27, saying the industry was denied meaningful tax relief despite what it described as repeated assurances from the government.

In a statement issued on Saturday, the association said the continuation of taxes on major production inputs would push up the cost of poultry products, deter new investment, erode export competitiveness and create risks for the country’s food security.

In a joint statement, PPA Chairman Abdul Basit, Vice Chairman Malik Muhammad Sharif, and senior members Dr FM Sabir and Khaleeque Arshad called on the government to revisit taxation measures affecting the poultry sector before parliament finalises the Finance Bill.

The association said the poultry industry is among Pakistan’s largest and most organised agro-based sectors, with a major role in food security, employment, rural development and the supply of low-cost animal protein. It added that the sector also holds significant unrealised potential for earning foreign exchange through exports of value-added poultry products.

According to the PPA, the budget has kept in place several taxes that raise production costs and reduce the sector’s competitiveness instead of encouraging growth and investment.

Taxes flagged by industry

The association identified the continued Rs10 federal excise duty on every day-old chick as one of its key concerns, arguing that the levy is economically unjustified. It said that because day-old chicks are the starting point of the production chain, the tax increases farming costs from the outset and ultimately leads to higher prices for consumers.

The PPA also objected to the 18% sales tax on processed chicken, saying it discourages investment in modern processing facilities. It maintained that the tax works against hygienic and value-added food production, disadvantages businesses operating within the formal system and makes safer processed poultry products less affordable.

Another major concern raised by the association was the continuation of import duties and sales taxes on essential feed inputs such as soybean meal, vitamins, minerals and amino acids. It noted that feed accounts for nearly 70-75% of total production costs, meaning taxes on these items significantly increase the prices of poultry meat and eggs.

In its statement, the PPA leadership said the sector plays a central role in supplying affordable animal protein in Pakistan and had remained in contact with policymakers for months over these issues. "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," he lamented.