- Experts recommend reducing GST on packaged milk from 18% to 5% to boost Pakistan’s dairy sector.
- The recommendation was made during a policy dialogue organized by the Sustainable Development Policy Institute in Islamabad.
- The dairy industry in Pakistan is largely informal, with over 90% undocumented and untaxed.
- High GST discourages formalization and penalizes businesses adhering to health standards.
- Reducing GST to 5% could enhance documentation, food security, and public health.
- Current 18% GST has led to a 20% decline in packaged milk sales and closure of over 500 milk processing units.
- Approximately Rs1.3 trillion has shifted to the unregulated informal market.
- Global average GST on milk is 6%, making Pakistan’s rate unusually high.
- Industry leaders stress the critical role of dairy in nutrition and oppose high GST.
- High tax has halted investment in dairy infrastructure and threatens public health.
- Nearly 96% of milk from the informal sector is adulterated, posing health risks.
- Reducing GST to 5% would incentivize formal operations and ensure safer milk supply.
- Stakeholders call for GST reduction to promote sector growth and improve nutritional outcomes.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
