Pakistan's poultry industry has criticised the federal budget for FY2026-27, warning that the absence of fiscal relief and the continuation of taxes on key production inputs could increase the cost of poultry products, discourage investment and undermine the sector's competitiveness. In a statement issued on Saturday, the Pakistan Poultry Association (PPA) expressed disappointment that the budget had not provided what it described as meaningful support for one of the country's largest agro-based industries, despite repeated assurances from the government. The association cautioned that retaining existing taxes would increase production costs, reduce export competitiveness and pose broader challenges to Pakistan's food security. In a joint statement, PPA Chairman Abdul Basit, Vice Chairman Malik Muhammad Sharif, and senior members Dr FM Sabir and Khaleeque Arshad urged the government to review taxation measures affecting the poultry industry before Parliament finalises the Finance Bill. The association said the poultry sector plays an important role in food security, employment generation, rural development and the supply of affordable animal protein. It also argued that the industry has considerable untapped potential to generate foreign exchange through exports of value-added poultry products. However, the PPA maintained that the budget had retained what it described as distortionary taxes that increase production costs and weaken the sector's ability to compete. Among its principal concerns was the continuation of the Rs10 federal excise duty on every day-old chick. The association argued that because day-old chicks represent the starting point of poultry production, the levy directly increases farming costs, which are ultimately passed on to consumers through higher prices. The PPA also criticised the retention of an 18 percent sales tax on processed chicken, describing it as a disincentive to investment in modern processing facilities. According to the association, the tax discourages hygienic and value-a dded food production, places compliant businesses at a competitive disadvantage and makes processed poultry products less affordable for consumers. Another concern raised by the industry was the continued application of import duties and sales taxes on essential feed ingredients, including soybean meal, vitamins, minerals and amino acids. The association noted that feed accounts for approximately 70 to 75 percent of total poultry production costs, meaning higher taxation on these inputs has a significant impact on the prices of poultry meat and eggs. "The poultry sector is the backbone of Pakistan's affordable animal protein supply," the association's leadership said, adding that industry representatives had remained engaged with policymakers for several months and had received repeated assurances that these taxation issues would be addressed. According to the PPA, the final federal budget did not incorporate those changes, prompting the association to call for a review of the proposed tax measures before t he Finance Bill is approved by Parliament.