Duty on DOC may cripple Pakistan’s poultry industry

The duty will increase cost of production and directly translate into higher prices for chicken meat and eggs in the market.

aviNews Asia

The Pakistan Poultry Association (PPA) has warned that the government’s decision to impose a federal excise duty (FED) of USD 0.035 on each DOC will cripple the already struggling poultry sector.

PPA Chairman Abdul Basit said this ill-conceived measure will:

• increase cost of production and directly translate into higher prices for chicken meat and eggs in the market, then lead to severe difficulties for consumers seeking affordable animal protein.
• force a large number of poultry farmers and entrepreneurs out of business, leading to widespread closures and unemployment in the rural economy.
• stifle investment, discourage expansion, and ultimately lead to a contraction of the poultry sector.

“This imposition of USD 0.035 FED on DOC is a catastrophic decision that demonstrates a profound lack of understanding of the poultry industry’s dynamics and its vital role in national food security,” he explained.

“Such a punitive tax at the very nascent stage of production will inevitably lead to a sharp increase in the cost of poultry products, which will be unaffordable for the common people.”