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KARACHI: As a result of the budget’s introduction of an 18% General Sales Tax (GST), Pakistani customers will have to pay up to Rs75 per liter extra for packaged milk as of July 1, 2024.
Industry sources warn that this proposed sales tax could be disastrous for the formal dairy sector, potentially shrinking it by over 70 percent if not withdrawn.
FrieslandCampina Engro Pakistan Limited, the company behind the Olper’s brand, has released a new price list reflecting the increased costs. The price of each 250ml pack for retail customers has risen to Rs95, with a carton box priced at Rs2,660 for Ecolean products and Rs2,565 for TBA products. Additionally, the price of each 100ml pack has increased to Rs370, with a carton box now costing Rs4,440. The 1500ml packs are now Rs535 each, with a carton box priced at Rs4,200, effective from July 1, 2024.
It is worth mentioning that despite being one of the world’s largest milk producers and consumers, Pakistan faces a serious malnutrition issues: 40 percent of children suffer from abnormal height, 29 percent are underweight, and 18 percent are scrawny. Currently, about 90 percent of Pakistan’s over 240 million people consume fresh unprocessed milk, while only 10 percent use packaged milk.