Govt Includes Chicks in Luxury Items in New Budget

The federal government has added a Rs. 10 federal excise duty on each day-old chick in the new budget. The government’s decision follows a budget that offered some relief in the form of a 10 percent salary increase, higher than the previously proposed 6 percent, and a reduced tax rate on solar panels, from 18 percent to 10 percent. However, these concessions created a revenue shortfall, compelling authorities to consider three new tax proposals to bridge the gap. One of the most debated among the new measures is the imposition of excise duty on day-old chicks. Critics argue that this effectively classifies poultry rearing as a luxury, which could drive up the cost of chicken and eggs for ordinary citizens already reeling from inflation. Industry representatives warn the move may destabilize the poultry sector, increasing production costs and potentially reducing supply. In addition to taxing chicks, the government has approved the tax on mutual fund profits for companies from 25 percent to 29 percent, and introducing a new 20 percent tax on government bonds and securities. These measures are part of a broader plan submitted to the International Monetary Fund, which received six alternative revenue proposals. The IMF has so far shown agreement on three of them.