Islamabad, June 23, 2025: In a move that has stirred debate across Pakistan’s business sectors, the federal government has introduced fresh revenue measures totaling Rs. 36 billion as part of Budget 2025, aiming to meet fiscal targets set by international lenders.
During a recent session of the National Assembly Standing Committee on Finance, the Federal Board of Revenue (FBR) chairman unveiled three major tax reforms, including a 10 percent Federal Excise Duty (FED) on Day-Old Chicks (DOC) at the hatching stage — a decision that could increase production costs for poultry farmers already struggling with inflation and feed shortages.
Industry experts warn this could lead to higher prices of poultry products, ultimately burdening the average consumer.
In addition to the poultry sector, two other significant tax adjustments were approved:
- Tax on dividends received by companies from mutual funds earning profit on debt has been increased from 25% to 29%, impacting the financial returns for corporates heavily invested in debt instruments.
- Withholding tax on profits from government securities has also been raised from 15% to 20%, specifically for institutional investors excluding individuals — a move seen as an attempt to broaden the revenue base without directly taxing the common citizen.
These new taxation policies come at a time when the government is under pressure to raise non-loan revenue and reduce fiscal deficit. However, economic analysts argue that such measures may impact investment sentiment and strain key industries.
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The decision has sparked concern among stakeholders, particularly in the agriculture and finance sectors, who fear the ripple effects on both production and investment.
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