The Pakistan Dairy Association (PDA) has called on the government to reduce the 18% General Sales Tax (GST) on packaged milk, warning that the tax is increasing milk prices and burdening both producers and consumers.Â
The demand was raised during a meeting with Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan on Wednesday, where key challenges faced by the dairy sector were discussed.
During the meeting, Haroon Akhtar highlighted that Pakistan is one of the world’s largest milk-producing countries, with an annual production exceeding 70 million tons. However, he noted that further development in dairy farming and milk processing industries is necessary to enhance quality standards and lower production costs.
The PDA representatives stressed that the 18% GST on packaged milk has led to higher consumer prices and has discouraged investment in the dairy sector. They urged the government to revise the taxation policy, arguing that a lower GST rate would ensure a steady milk supply at affordable prices while fostering growth in the industry. The association also pointed out that high taxation is driving many consumers toward the informal, unregulated milk sector, which lacks quality control and poses health risks.
Haroon Akhtar assured the delegation that the government is committed to addressing the dairy sector’s challenges and will continue engaging with relevant stakeholders to find viable solutions. He acknowledged the concerns regarding taxation and its impact on the industry, stating that sustainable policies are needed to balance government revenue generation with industry growth and consumer affordability.
The discussion also touched on the need for increased investment in modern dairy farming techniques and improved infrastructure to enhance milk production and processing capabilities. Haroon Akhtar emphasized that achieving self-sufficiency in food production would not be possible without significant investment in the dairy sector.
Meanwhile, Haroon Akhtar also held a separate meeting with the Pakistan Business Council (PBC) to discuss key issues related to exports, imports, and tariff policies. The meeting, attended by Federal Minister for Commerce Jam Kamal Khan, focused on the challenges businesses face due to high production costs and tariff structures.
Haroon Akhtar reaffirmed that Prime Minister Shehbaz Sharif’s government is actively working to boost exports and improve the overall business environment. He emphasized that policy consistency is essential for economic growth and assured business representatives that the government is implementing measures to facilitate trade and industrial expansion.
Jam Kamal also underscored the importance of strengthening trade and industry at both national and international levels. He reiterated the government’s commitment to ongoing consultations with the business community to drive industrial and trade development, ensuring long-term economic stability.
