In a move that has sparked controversy, the federal government has introduced a Rs. 10 federal excise duty on each day-old chick as part of the new budget.

This decision comes alongside a budget that includes a 10 percent salary increase, surpassing the previously proposed 6 percent, and a reduction in the tax rate on solar panels from 18 percent to 10 percent. However, these concessions have led to a revenue shortfall, prompting authorities to explore three new tax proposals to address the deficit.

One of the most contentious measures is the excise duty on day-old chicks. Critics argue that this effectively categorizes poultry rearing as a luxury, potentially driving up the prices of chicken and eggs for ordinary citizens already struggling with inflation. Industry representatives warn that this move could destabilize the poultry sector, increasing production costs and possibly reducing supply.

In addition to the tax on chicks, the government has proposed raising the tax on mutual fund profits for companies from 25 percent to 29 percent, as well as 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 (IMF), which has received six alternative revenue proposals. So far, the IMF has expressed agreement on three of these proposals.