Government Imposes 18% GST on Packaged Milk in Pakistan
The prices of packaged milk in Pakistan are set to rise as the government has imposed an 18% general sales tax (GST) in the Budget 2024-25, effective from July 1. This decision follows the approval of the budget by the National Assembly, which also included a GST on herbal and homeopathic medicines, as well as food items like branded flour, packaged rice, and lentils.
Despite the rejection of the proposal by the Senate Standing Committee on Finance, the government has decided to move forward with the implementation of the sales tax. This move is expected to impact the cost of living for many Pakistanis, especially low-income families who depend on these essential items.
The International Monetary Fund (IMF) has reportedly pressured Pakistan to reduce sales tax exemptions, leading to an expected increase in prices for various staples in the upcoming budget. The National Assembly approved the Federal Budget for 2024-25, with a total outlay of Rs18,870 billion, signaling the government’s commitment to its financial proposals for the year ahead.