Govt to reconsider GST on packaged milk following dairy sector concerns

ISLAMABAD: In a bid to address the challenges faced by the dairy sector, Minister for National Food Security and Research, Rana Tanveer Hussain, assured the Pakistan Dairy Association (PDA) that the government will review the 18 per cent General Sales Tax (GST) on packaged milk, which has been contributing to rising costs for processors and farmers.

During a meeting with a PDA delegation on Thursday, the minister acknowledged the concerns raised by industry representatives and promised that the government would carefully examine the impact of the GST on the dairy industry.

A senior official from the Ministry of National Food Security and Research (MNFS&R) confirmed that discussions during the meeting revolved around the pressing challenges in the sector, particularly the burden of the 18 per cent tax.

Key issues such as the need for increased investment in dairy farms to boost milk production were also highlighted. According to the minister, Pakistan, being one of the world’s top milk producers with an annual output of over 70 million tons, has immense potential. However, strategic investments and policy reforms are needed to fully unlock this potential.

The PDA delegation underlined that the high GST on packaged milk has not only impacted affordability for consumers but has also deterred further investment in the sector. They urged the government to reconsider the tax to foster growth and sustainability.

Minister Hussain stressed the importance of facilitating investments in the dairy sector, pointing out that doing so would not only improve production levels but also enhance the quality of milk and dairy products.

He also noted that aligning Pakistan’s dairy industry with international standards would attract investment, boost growth, and strengthen the sector’s global competitiveness.

The minister reiterated the government’s commitment to working closely with stakeholders to explore measures that could support the industry while ensuring that any potential tax relief would benefit both consumers and dairy farmers.

He concluded by underlining the crucial role of the dairy sector in achieving national food security. Without its development, Pakistan’s goal of self-sufficiency in food production would remain a challenge, he said. The government, he added, is focused on reforming policies to modernise the dairy industry and stabilise milk prices for long-term sustainability.

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