Historic drop in milk prices, Government’s surprising plan revealed

ISLAMABAD: The federal government has started considering a major change related to the dairy sector for the upcoming budget.

Federal Minister for National Food Security and Research Rana Tanveer Hussain has proposed a reduction in sales tax on milk. The aim of this move is said to be to provide relief to common consumers and make basic food items cheaper.

This proposal has been sent to the Tax Policy Unit of the Ministry of Finance and the Federal Board of Revenue (FBR). It has also been said that along with the reduction in tax, alternative sources of revenue should also be considered. For this, it has been recommended to include projects like pasteurization of milk and Safe Milk Cities.

Rana Tanveer Hussain said this while addressing a joint consultative meeting of the Sustainable Development Policy Institute (SDPI) and the Pakistan Dairy Association. He said that providing quality and safe milk to the public at affordable prices should be the government’s priority.

The minister said that the livestock sector plays an important role in the country’s economy and is a major part of the agricultural sector. It not only meets the domestic needs but also increases exports. However, the current tax system, especially the sales tax imposed on dairy products, is putting pressure on both production and price.

He stressed that reforms in the dairy sector are inevitable. If the tax system is improved, it will not only benefit the farmers but also the consumers will be able to get affordable and quality products.