In a move aimed at easing pressure on consumers and strengthening Pakistan’s dairy industry, the federal government is considering a reduction in sales tax on essential dairy products.
Federal Minister for Commerce Jam Kamal Khan has directed authorities to prepare a formal proposal to cut the general sales tax (GST) on dairy items from 18% to 10%, a step that could provide significant relief to households while supporting sector growth.
The directive came during a meeting chaired by the minister with a delegation of the Pakistan Dairy Association (PDA), led by CEO Dr Shehzad Amin.
Prime Minister’s Coordinator on Commerce Rana Ihsaan Afzal also joined the session virtually, along with senior officials from the Ministry of Commerce, according to an official statement issued on Monday.
The discussion covered key challenges facing the dairy sector, including taxation, tariffs, productivity enhancement, and the need to formalize the industry. Jam Kamal stressed that improving genetic quality of dairy animals and guiding farmers toward structured business models is essential for increasing milk production.
The PDA highlighted that Pakistan currently imposes an 18% GST on dairy products, while many countries apply minimal or zero tax on such essentials.
