ISLAMABAD: Federal Minister for National Food Security and Research, Rana Tanveer Hussain, has assured that the government will review the 18% General Sales Tax (GST) imposed on packaged milk to encourage investment and ease financial pressure on the dairy industry.
The assurance came during a meeting with a delegation from the Pakistan Dairy Association (PDA) on Thursday. During the discussion, PDA representatives highlighted the serious challenges facing the sector, particularly the financial burden the GST places on dairy processors and farmers.
The minister acknowledged that the tax has led to higher consumer prices and discouraged investment in dairy farms, ultimately affecting overall milk production.
Hussain noted that Pakistan, one of the world’s leading milk producers with over 70 million tonnes produced annually, needs strategic investments and policy reforms to unlock its full potential.
The PDA urged the government to reconsider the GST, warning that it threatens affordability for consumers and slows down sectoral growth. In response, the minister assured the association that his ministry would consult stakeholders and explore supportive measures.
He stressed that any tax relief would be structured to benefit both consumers and farmers directly. Hussain further emphasized the importance of aligning Pakistan’s dairy sector with global standards to enhance competitiveness and attract investment.
He concluded by reaffirming the government’s commitment to introducing reforms aimed at stabilizing milk prices and promoting sustainable growth through collaborative policymaking with all stakeholders.
