Attention all consumers! Brace yourselves for a bump in prices as milk producers have hiked rates by 18%, passing on the increase in general sales tax directly to you. For instance, a litre of Olper milk now costs Rs360, up from Rs295 in June. This trend is echoed across various brands in the market.
Amidst this turmoil, the FMCG sector finds itself in a dilemma. The government’s new taxation policies have left retailers confused and grappling with additional taxes that are now their responsibility. As a result, many unregistered retailers are pushing back, returning goods and disrupting the supply chain.
On the flour front, the Pakistan Flour Mills Association predicts a price surge of Rs5.5 to Rs9 per kg due to the new tax regime. The chairman has urged authorities to reconsider these measures to prevent a burden on low-income consumers.
The impact of these tax changes is reverberating across the market, with stakeholders contemplating their next move. Stay tuned for further developments as the industry navigates these taxing times.
Published in Dawn, July 5th, 2024
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