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.”
A cornerstone of economic growth
Mr Basit said Pakistan’s poultry industry has been a cornerstone of economic growth and a crucial provider of affordable protein to millions.
Poultry is among the country’s largest industries, growing steadily at 8-10% annually. However, it has consistently grappled with various challenges, including high input costs, disease outbreaks, and an often-unfavorable tax regime.
Request to consider and withdraw
The PPA urged the government to immediately reconsider and withdraw the FED. Mr Basit emphasized the need for a collaborative approach between the government and industry stakeholders to formulate policies that are:
- conducive to growth,
- ensure affordability for consumers,
- and safeguard the future of Pakistan’s vital poultry sector.
“We have consistently advocated for policies that support the growth and sustainability of the poultry industry, which in turn benefits the entire nation. Instead, this new tax is a regressive step that will undo years of progress and push the industry to the brink of collapse,” Mr Basit stated.