- Govt to consult the stakeholders on the challenges of the dairy sector.
- The Minister emphasizes the alignment of the dairy industry with global standards.
- Investment in crucial farms for higher milk production.
Islamabad: The government is expected to examine the general sales tax (TPS) of 18% on packaged milk to encourage investment and support the dairy sector, said Federal Minister for Food Safety and National Research Rana Tanveer Hussain.
The Minister made the assurance of a delegation from the delegation of the Pakistan Laitière Association (PDA) at a meeting Thursday, where the visit side highlighted the main challenges that the dairy industry faces, including financial pressure on dairy and farmers because of the TPS.
The tax has led to an increase in costs for consumers and hampered investments in dairy farms, which has an impact on the overall production of milk, the minister noted, according to a press release from the press information department.
Minister Hussain recognized Pakistan’s status as a leading country producing milk with annual production of more than 70 million tonnes.
However, he stressed that strategic investments and political reforms were essential to unlock the full potential of the sector. It has reaffirmed the government’s commitment to facilitate investments in dairy farms to stimulate milk production and improve product quality.
The PDA has urged the government to reconsider the tax, citing its negative effects on affordability and sectoral growth.
The federal minister assured the delegation that the Ministry of National Food Security and Research would consult the stakeholders and explore measures to support the industry.
He stressed that any tax relief would be designed to benefit directly from consumers and dairy producers.
Hussain has also reiterated the need to align the dairy sector of Pakistan with global standards to improve competitiveness and attract investments. He stressed that without modernizing industry, self-applied to food security would remain a challenge.
The government, he added, would continue to work on political reforms to stabilize milk prices and promote sustainable growth through stakeholder consultations.