The rural parts of Lahore District around Raiwind have many poultry farms — broiler sheds raising birds for meat in six-week cycles and layer farms producing eggs. Farmers often assume poultry counts as agriculture because it's on farmland. For federal tax purposes, poultry farming is generally treated as a business.
Poultry is generally business income
Agricultural income is broadly income from land used for agriculture. Poultry farming, which uses land as a site for sheds rather than cultivating it, is generally treated as business income for federal income tax. Plan on that basis.
Broiler cycles
| Item | Record |
|---|---|
| Day-old chicks bought | Hatchery bills |
| Feed | Feed mill bills (largest cost) |
| Vaccines and medicines | Bills |
| Electricity, gas for brooding | Bills |
| Labour | Wage register |
| Mortality | Daily record |
| Birds sold | Weight, rate, buyer |
A flock register per cycle shows birds placed, mortality, feed used and birds sold. Feed conversion ratio and mortality are what explain your profit — or loss — in a cycle.
Contract farming
Many broiler farmers work on contract for integrators who supply chicks, feed and medicine and pay a growing fee per bird or per kg. Then your income is the fee, not the bird's sale value. Keep the contract and settlement statements.
Layers and eggs
Layer farms sell eggs daily to wholesalers and distributors. Flock replacement, feed and spent-hen sales are part of the records.
Sheds and equipment
Poultry sheds, environmentally controlled houses, generators and feeders are capital assets. Bank finance creates liabilities.
Sales tax
Live poultry and eggs have generally been exempt from sales tax; processed products may not be.
Price swings in broilers are dramatic — a cycle can lose money. Recording each cycle separately is the only way to show genuine losses alongside profits.
Bank finance and insurance
Many poultry farms are built with bank loans. The loan is a liability; the profit or interest part of each instalment is a business cost. Some farmers insure flocks against disease; premiums are costs and claims received offset losses.
Selling manure
Poultry manure is sold to farmers as fertiliser. It's a small but real income stream — record it with the cycle.
Disease outbreaks
Outbreaks can wipe out a flock. Record mortality daily and keep the vet's reports. A documented outbreak explains a loss-making cycle better than anything else.
Raiwind — questions we get asked
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