Govt may reduce GST on milk and dairy items to 10%

The Pakistan government is planning to reduce sales tax on dairy products to help consumers and support the dairy industry.

Jam Kamal Khan has asked officials to prepare a proposal to lower the General Sales Tax (GST) on dairy items from 18% to 10%. This step could make milk and other dairy products more affordable for people.

The decision was discussed in a meeting with the Pakistan Dairy Association, led by its CEO Dr Shehzad Amin. Rana Ihsaan Afzal also joined the meeting online along with other senior officials.

During the meeting, participants talked about major issues faced by the dairy sector, such as high taxes, tariffs, and low productivity. The minister said that improving the quality of dairy animals and helping farmers follow better business practices can increase milk production.

The Pakistan Dairy Association pointed out that Pakistan currently charges 18% GST on dairy products, while many other countries keep taxes on such essential items very low or even zero. The proposed tax cut is expected to bring relief to consumers and boost the growth of the dairy industry.