Chicken Prices to Increase After New Tax

The federal government has approved Rs36 billion worth of new tax measures One of the most debated decisions is the imposition of a Rs. 10 federal excise duty (FED) on day-old chicks, which has alarmed poultry farmers and industry stakeholders. The poultry sector fears this move could lead to increased production costs and consumer prices. The decision followed the government’s unexpected increase in public sector salaries by 10%, up from the initially proposed 6%, and a reduction in the proposed 18% tax on imported solar panels to 10%. These adjustments created a significant revenue gap in the budgetary framework agreed upon with the International Monetary Fund (IMF). The chairman of the Federal Board of Revenue (FBR) stated that in light of the shortfall, the IMF had asked for a revised revenue strategy. “Six proposals were submitted, and the IMF approved three,” he said. In addition to the tax on chicks, the approved measures include: