Government Faces Criticism Over Proposed 18% GST on Infant Formula and Baby Food

Representatives from the industry and the public have raised concerns and criticized the government’s plan to impose an 18% General Sales Tax (GST) on locally produced infant formula milk and baby food in Pakistan. They fear that this heavy taxation will exacerbate malnutrition among infants and children as parents may opt for cheaper and less nutritious alternatives.

The budget proposal presented by the finance minister aims to withdraw the zero-rating status of locally produced infant formula, baby food, and fortified child nutrition milk powders, and impose the 18% GST on these products. This decision comes at a time when Pakistan is already grappling with a malnutrition crisis, with high under-five mortality rates and a significant portion of children suffering from underweight and stunting.

Industry representatives have suggested a phased approach to the imposition of the GST, with the aim of reducing the immediate impact on affordability for consumers. They argue that this strategy will allow businesses and consumers to adjust gradually, minimizing the adverse effects of the tax hike.

This contentious issue highlights the importance of addressing malnutrition and ensuring access to affordable and nutritious food for infants and young children in Pakistan.

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