Call to withdraw 10pc ST on milk products

LAHORE  –    Pakistan Dairy Association (PDA) has requested the government to withdraw the 10 percent sales taxes on fat filled milk products classified under Eighth Schedule of the Sales Tax Act, 1990. Major products categorized under fat filled milk category in Pakistan encompass tea whiteners and fortified milk based formulae for growing children to address malnutrition.

“This policy will not only damage the dairy industry but will also force consumers to go back to adulterated and unhygienic loose milk due to increase in the price of tea whiteners and other fat filled milk products of basic nutrition for growing children”, Zulfiqar Khalid Shaikh, Chairman PDA, said in a letter to the prime minister and the finance minister. “Tea whitener is predominantly used by poorer segment of the society as an alternative to unhygienic and adulterated loose milk which is available within their affordability”.

The letter emphasized that fortified milk based formulae are manufactured keeping in view the micro-nutrient deficiency (iron, vitamins and minerals) among children that are indispensable for growth and development. Higher taxes on these products will only result in shifting the burden upon the common man.

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