'Govt to get Rs 70 billion tax from packaged milk'

ISLAMABAD: Well-known industrialist Mia Zahid Hussain expressed reservations over the government’s decision to impose an 18 percent sales tax on packaged milk, ARY News reported.

He said that the move will not only increase the financial burden on the already struggling masses but also benefit the dairy farmers who he said do not pay taxes.

Mia Zahid Hussain said that the government will earn approximately Rs 70 billion in taxes from packaged milk, which has a market share of only 5 percent.

He said that the loose milk sold by dairy farmers has a market share of 95 percent. He said that the quality of loose milk is also substandard, and the government’s decision will further exacerbate the situation.

Mia Zahid Hussain said that that the tax rate on packaged milk in Pakistan is the highest in the world. He said that those who want to give their children quality milk can no longer afford packaged milk due to the government’s ‘unclear’ policy on the matter.

Read More: Budget 2024-25: Packaged milk becomes costlier as GST imposed

Earlier, the dairy and cattle farmers in Karachi are demanded a significant increase in the price of milk, proposing an additional Rs80 per liter.

The dairy and cattle farmers, who had previously agreed with the Karachi commissioner to maintain the milk price at Rs220 per liter until December 2024, are now pushing to nullify this agreement and set a higher price. They are advocating for a revised price of Rs300 per liter, seeking an official notification to endorse this change.

The dairy and cattle farmers association has formally presented their request to the Karachi Commissioner, urging the issuance of a new price notification to reflect the proposed hike.