Poultry industry criticises budget 2026-27 over lack of tax relief

The Pakistan Poultry Association (PPA) has voiced strong disappointment over the federal budget for the fiscal year 2026-27

The Pakistan Poultry Association (PPA) has voiced strong disappointment over the federal budget for the fiscal year 2026-27, saying the government failed to provide the expected financial support to the country’s poultry sector despite repeated commitments to address its longstanding tax concerns.

In a statement issued on Saturday, the association warned that the continuation of heavy taxation on essential poultry inputs would further increase production costs, raise the prices of chicken and eggs for consumers, discourage new investment, and weaken Pakistan’s potential in international poultry markets.

PPA Chairman Abdul Basit, Vice Chairman Malik Muhammad Sharif, and senior members Dr FM Sabir and Khaleeque Arshad urged the government to reconsider the taxation policies affecting the industry before the Finance Bill receives final approval from parliament.

The association highlighted that the poultry sector is among Pakistan’s largest organised agricultural industries, playing a crucial role in ensuring food security, creating employment opportunities, supporting rural economies, and supplying affordable animal protein to millions of people. It added that the industry also holds significant potential to boost exports and earn valuable foreign exchange through processed and value-added poultry products.

However, industry representatives expressed concern that the budget has maintained several taxes that they believe are damaging to the sector’s growth and competitiveness. They specifically criticised the continuation of the Rs10 federal excise duty imposed on each day-old chick, arguing that the tax raises production costs from the very beginning of the poultry supply chain.

The PPA also opposed the 18 per cent sales tax on processed chicken, stating that it discourages investment in modern and hygienic processing facilities, makes legally compliant businesses less competitive, and increases the cost of safer processed poultry products for consumers.

Furthermore, the association raised concerns over import duties and sales taxes on vital feed ingredients, including soybean meal, vitamins, minerals, and amino acids. Since poultry feed accounts for nearly 70 to 75 per cent of overall production expenses, additional taxes on these items significantly increase the cost of poultry meat and eggs.

The PPA leadership said the poultry industry remains the backbone of affordable protein supply in Pakistan and noted that it had maintained continuous engagement with policymakers over the past several months. According to the association, the government had assured the industry that taxation anomalies would be resolved, but the final budget failed to fulfil those expectations.