Islamabad: The government is scheduled to decline the public sales tax by 18 % on the filled milk in an attempt to enhance investment and enhance the dairy sector, according to the Federal Minister of National Security and Research, Rana Tanvir Hussein.
The Minister issued this announcement during a meeting with a delegation from the Pakistani Dairy Association (PDA) on Thursday, where the group shed light on many of the challenges facing the dairy industry, including financial pressure on dairy treatments and farmers due to the tax and services tax.
According to a statement issued by the Press Information Department, the tax led to the high costs of consumers and hindered investment in dairy farms, which in turn affected the production of milk in general.
Minister Hussein admitted to Pakistan’s position as a pioneering global product, as the annual product exceeds 70 million tons. However, he stressed that strategic investment and comprehensive reforms of policies are very important to cancel the full sector capabilities. He assured the delegation that the government is still committed to facilitating investment in dairy farms to enhance milk production and improve product quality.
PDA representatives urged the government to reconsider the tax, highlighting its negative impact on the ability to afford and sectoral growth. In response, Minister Hussein confirmed to the delegation that the Ministry of National Food Security and Research will participate with the stakeholders concerned and explore solutions to support this industry.
He stressed that any possible tax mitigation will be designed for both consumers and dairy farmers directly.
Moreover, the minister repeated the importance of updating the dairy sector in Pakistan to meet global standards, increase competitiveness and attract investment. He stressed that achieving food security and self -sufficiency will remain a challenge without modernizing the industry.
He added that the government will continue to work on policy reforms aimed at stabilizing milk prices and ensuring sustainable growth through continuous consultations with stakeholders in the industry.
