Govt starts collecting Rs10 excise duty on day-old chick

The government has imposed a federal excise duty (FED) of Rs 10 on every day-old chick, a move that has alarmed poultry stakeholders across the country, 24NewsHD TV channel reported on Friday.

According to tax expert Ahmad Hassan, from July 1, the government has classified the poultry sector as part of the "luxury goods" category. As a result, the new FED will inevitably lead to an increase in poultry prices.

The tax expert explained that since the FED came into effect on July 1, it will make access to protein-rich food items more expensive and difficult for the general public.

Meanwhile, the Pakistan Poultry Association (PPA) has strongly condemned the government's decision.

PPA Chairman Abdul Basit warned that the imposition of Rs10 FED on each day-old chick will severely damage the already struggling poultry industry and will have dire consequences for consumers trying to afford essential animal protein.

According to him, this tax—imposed at the very first stage of production—will significantly raise production costs and result in higher retail prices for poultry products, pushing them beyond the reach of the average citizen.

He emphasised that poultry is one of the largest industries in Pakistan, growing annually at a rate of 8–10%. He stressed that this FED will have direct and immediate effects, escalating production costs and potentially forcing many farmers and entrepreneurs out of business.

The increase in production cost will directly impact the prices of chicken meat and eggs, further burdening consumers already grappling with inflation.

In light of these consequences, the Pakistan Poultry Association has urged the government to immediately withdraw the federal excise duty on day-old chicks to safeguard both the industry and consumer interests.

Reporter: Baseem Iftikhar