Mian Zahid Hussain has criticized the government’s decision to impose 18 percent sales tax on packaged milk, predicting it will generate approximately Rs 70 billion in revenue from a market that only comprises 5 percent of total milk sales.
Hussain voiced concerns that this tax will increase the financial burden on already struggling consumers while benefiting dairy farmers who do not pay taxes. He pointed out that loose milk, which is sold by dairy farmers, holds a 95 percent market share and is often of substandard quality. He warned that the new tax policy would worsen this issue.
“The tax rate on packaged milk in Pakistan is the highest in the world,” Hussain stated. “Those who want to provide quality milk for their children can no longer afford packaged milk due to the government’s unclear policy.”
In a related development, dairy and cattle farmers in Karachi have demanded a significant price increase for milk, proposing an additional Rs 80 per liter. They had previously agreed with the Karachi commissioner to keep the milk price at Rs 220 per liter until December 2024. However, they are now pushing to nullify this agreement and set a new price of Rs 300 per liter, seeking official endorsement through a new price notification.
The dairy and cattle farmers association has formally presented their request to the Karachi Commissioner, urging the issuance of a new price notification to reflect the proposed hike.