ISLAMABAD: The federal government will review the 18% General Sales Tax (GST) on packaged milk to support the dairy sector and attract investment, Federal Minister for National Food Security and Research Rana Tanveer Hussain announced on Thursday.
During a meeting with a delegation from the Pakistan Dairy Association (PDA), the minister acknowledged the challenges faced by dairy processors and farmers due to the tax. The delegation highlighted how the GST had increased production costs, raised consumer prices, and discouraged investment in dairy farming, ultimately affecting overall milk production.
A statement from the Press Information Department quoted Minister Hussain as saying that while Pakistan is one of the world’s largest milk producers, with an annual output exceeding 70 million tonnes, strategic investments and policy reforms are essential to unlock the sector’s full potential. He reaffirmed the government’s commitment to creating a business-friendly environment to boost milk production and improve product quality.
The PDA urged the government to reconsider the tax, citing its negative impact on affordability and industry growth. The minister assured the delegation that the Ministry of National Food Security and Research would consult stakeholders and explore measures to support the sector. He emphasized that any tax relief would be structured to benefit both consumers and dairy farmers directly.
Hussain further stressed the need to align Pakistan’s dairy sector with international standards to enhance competitiveness and attract investment. He noted that modernization and policy stability are crucial for achieving self-sufficiency in food security.
The government, he added, will continue engaging with industry stakeholders to introduce policy reforms aimed at stabilizing milk prices and promoting sustainable growth in the sector.
