Federal Minister for National Food Security and Research Rana Tanveer Hussain has proposed a reduction in sales tax on milk for the upcoming federal budget.
The recommendation has been forwarded to the Ministry of Finance’s Tax Policy Unit and the Federal Board of Revenue (FBR), taking into account alternative taxation measures and planned initiatives such as pasteurisation projects and the establishment of “Safe Milk Cities.”
He made these remarks while addressing a pre-budget consultative meeting jointly organized by the Sustainable Development Policy Institute (SDPI) and the Pakistan Dairy Association.
Rana Tanveer Hussain stressed the need to make milk and dairy products more affordable for the public, ensure the availability of safe nutrition, and support farmers through rationalized taxation and structural reforms in the dairy sector.
The minister said that the livestock sector accounts for nearly 60% of the agricultural economy, highlighting its significant potential for both domestic nutrition and exports. However, he acknowledged that existing taxation policies, particularly sales tax on dairy products, have impacted production levels.
