The price of packaged milk has climbed by Rs. 75 per liter, or 25%, since the federal government’s pro-IMF budget went into full force today.
Packaged milk now sells Rs. 370 per liter, up from Rs. 295 per liter the previous fiscal year, due to an 18% sales tax and a 2.5 percent retailer tax.
FrieslandCampina Engro Pakistan Limited has announced a price hike for its milk products, commencing July 1, 2024. The rise is due to increased production costs and economic reasons affecting the dairy business, according to the company’s most recent marketing.
The rates of packaged milk sold by other companies/vendors have also raised, effective July 1, 2024, to reflect the effects of the 18 percent sales tax and 2.5 percent tax on retailers according to Finance Bill 2024.
The government has suggested an 18% tax on infant milk commodities that do not exceed Rs. 600 per 200g.
The overall income effect will be around Rs. 95 billion (Rs. 75 billion for regular milk and Rs. 20 billion for infant milk).
During his post-budget conference on June 13, Finance Minister Muhammad Aurangzeb stated that the middle class should not find it difficult to pay the 18% sales tax on milk products.
