Islamabad: The Pakistani Dairy Association (PDA) urged the government to reconsider the imposition of high taxes and duties on bottled dairy products and dairy products, warning that high costs limit the consumer access and lead the deployment of low -quality milk in the market.
In a letter to the Ministry of Industries and Production, PDA highlighted that although Pakistan is the third largest milk producer in the world, heavy taxes destroy the industry. The association indicated that Pakistan is the only country in the world to impose a 18 % general sales tax on the bottom milk.
During a recent meeting with a special assistant to Prime Minister Aaron Akhtar Khan, the PDA delegation led by the administrative director Fauji Foods and President of PDA Othman Zuhair raised concerns about the challenges facing the dairy sector. Kashan Hassan, CEO of PDA, CEO of PDA, Dr. Shahzad Amin, and other industry representatives, attended the administrative director of Fristlandbina Ingro Pak, Vice President of PDA Kashan Hassan, CEO of PDA Dr. Shahzad Amin, and other industry representatives.
Dr. Shahzad Amin emphasized the decisive role of milk in the Pakistani Mediterranean diet, stressing that high costs contribute to malnutrition.
“There are only two milk sources for consumers: packed and new. However, there is no suitable application for quality standards at the open market level.”
PDA called for a decrease in the commodity and services tax on bottled milk to ensure reasonable and fixed prices with support for the sustainability of the dairy sector. Dr. Shahzad added: “We say that this is not an ordinary industry, and dairy products such as cheese, ghee, butter, cream, and Lassi are not luxurious elements.”
Since the income of the tax in the current fiscal year, the packed milk sector has suffered a decrease in sales of more than 20 %. “The average milk treatment was about 1,000 million liters last year, but after the tax imposed, sizes fell to about 800 million liters per day.”
Industry representatives also indicated that in addition to taxes, the high costs of electricity and high tariffs for importing factories and machinery have escalated from work expenditures. PDA continues to press policy reviews to stabilize the dairy sector and ensure the ability to withstand the costs of the basic dairy products for consumers.
