Summary Federal Constitutional Court declares 4% extra tax on poultry feed mills illegal, overturning LHC ruling, protecting unregistered poultry farms and feed mill owners from penalties
ISLAMABAD (Dunya News) – The Federal Constitutional Court (FCC) has declared the collection of a 4 percent additional tax from poultry feed mills unlawful.
A two-member bench led by Justice Aamer Farooq ruled that there is ambiguity in Section 31A of the tax law. The government had imposed extra tax on feed supply to unregistered poultry farms, collected under the 2024 Finance Act.
The court clarified that, according to the law, poultry farms are exempted from such taxes and are not required to register to receive this exemption. As a result, unregistered poultry farms are legally protected, and neither they nor feed mill owners can be penalized.
It has overturned a Lahore High Court (LHC) decision, which had earlier upheld the collection of the additional 4% tax. Poultry feed mill owners had challenged the levy in court.
