Poultry Sector Gets No Relief in Budget

High taxation on primary and final goods pushes poultry margins down (2-4 magnitude) within the short to mid term. The key risk is political intervention; if the government provides subsidies or tax exemptions, the projected margin compression will be materially mitigated.

The retention of high taxes (Rs10 excise duty on day-old chicks and 18% sales tax on processed chicken) directly increases input costs for poultry producers and raises consumer prices. This squeezes the gross margin for poultry processors/farmers, negatively impacting food security and competitiveness in Pakistan.