Islamabad, June 23, 2025: In a surprising move, the federal government has imposed Rs36 billion worth of new tax measures to plug the budget deficit created after last-minute revisions to the fiscal plan. Among the most controversial is a Rs10 federal excise duty (FED) on day-old chicks, which has sent shockwaves through the poultry industry.
Poultry farmers have warned that this measure will raise input costs, ultimately leading to a sharp increase in Lahore chicken prices and across other urban markets. Industry stakeholders argue that taxing the poultry supply chain at such a sensitive stage will disrupt production and put additional pressure on already strained household budgets.
This decision comes after the government raised public sector salaries by 10%—a hike from the initially proposed 6%—and reduced the tax on imported solar panels from 18% to 10%. These changes created a fiscal gap in the budget, prompting the IMF to demand a revised revenue strategy.
According to the Chairman of the Federal Board of Revenue (FBR), six proposals were sent to the IMF, of which three were approved. In addition to the chick tax, other approved tax measures include:
- A 29% tax on profits earned through mutual funds by corporate entities
- A 20% tax on income from government securities
Poultry associations are preparing to file formal objections, warning that this policy may not only harm small farmers but also impact food security in the coming months. If the Lahore chicken market reacts with price hikes, consumers across Pakistan could bear the brunt of a deeply unpopular policy shift.
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