The government is considering revising the 18% General Sales Tax (GST) on packaged milk to encourage investment and support the dairy sector, Federal Minister for National Food Security and Research Rana Tanveer Hussain announced.
During a meeting on Thursday with a delegation from the Pakistan Dairy Association (PDA), the minister acknowledged the challenges faced by the industry, particularly the financial burden on dairy processors and farmers due to the GST.
He noted that the tax has led to higher costs for consumers and discouraged investment in dairy farms, ultimately impacting milk production. According to a statement from the Press Information Department (PID), the minister highlighted the need for strategic reforms to unlock the sector’s full potential.
Pakistan, one of the world’s largest milk producers with an annual output exceeding 70 million tonnes, requires policy adjustments and investment to enhance productivity and quality, Hussain said. He reaffirmed the government’s commitment to supporting dairy farmers and facilitating growth in the sector.
The PDA delegation urged the government to reconsider the GST, arguing that it hampers affordability and stifles industry expansion. In response, the minister assured them that the Ministry of National Food Security and Research would engage stakeholders and explore measures to provide relief.
He emphasized that any tax adjustments would be aimed at benefiting both consumers and dairy farmers. Additionally, he underscored the importance of aligning Pakistan’s dairy sector with global standards to improve competitiveness and attract investment.
Hussain reiterated the government’s commitment to policy reforms that stabilize milk prices and promote sustainable growth, ensuring continued stakeholder engagement in the decision-making process.
