Govt considers abolishing tax on baby milk powder

Islamabad: Recognizing the importance of infant milk powder for the growth and development of newborns and young children, the federal government is considering removing the tax imposed on it.

This was indicated by Minister for National Food Security and Research Rana Tanveer Hussain while talking to a delegation of the Swiss multinational Food and Drink Processing Corporation, according to a media report.

The federal minister assured the delegation that the ministry is working seriously on the issue, and positive progress is expected soon.

Rana Tanveer said that the government’s top priority is to reduce taxes on infant milk powder and ensure that every citizen has easy access to this essential commodity.

Infant milk is directly related to the growth and development of newborns and young children, therefore, it should either be tax-free or subject to minimal taxes.

During the meeting, the Nestle delegation highlighted various issues facing the industry, especially focusing on taxes imposed on infant milk powder.

The Federal Minister also gave examples of other countries where infant milk powder is exempt from tax, and pointed out that there is no Value Added Tax (VAT) on infant milk powder in the UK and Ireland.

Similarly, in Australia and New Zealand, infant formula milk is considered a basic nutritional necessity and is therefore exempt from tax.

Referring to the policies of these countries, he stressed the need for Pakistan to adopt a similar approach so that every family can easily access quality milk for their children.

Rana Tanveer urged the Nestle delegation to make maximum use of local fruits in their products to benefit rural farmers and boost the country’s agricultural production.

He said that many rural families depend on the production and sale of milk for their livelihood, and the government will make every effort to improve their economic conditions.

The Minister of Food Security further announced that his ministry will constitute a committee to address key issues, in which all stakeholders will be invited to participate. Through this consultative process, practical proposals for reducing taxes on infant milk powder will be discussed in detail.