Packaged milk has grown much more expensive since the federal government’s pro-IMF budget went into force on July 1; packaged milk costs rise by Rs75 due to new taxes or increased by 25%.
The per litre price for consumers has increased from Rs.295 to Rs.370 in this current fiscal year. An additional 2.5% tax on retailers and an 18% sales tax are the main causes of this hike.
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A renowned dairy manufacturer responded by announcing a price change for its milk products that would take effect on July 1, 2024.
In its most recent ad campaign, the business highlighted the need for this modification, citing rising production costs and wider economic concerns impacting the dairy industry.
In line with the Finance Bill 2024’s new tax policies, which include an 18% sales tax and a 2.5% tax on merchants to increase government income, other vendors have also changed their pricing.
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Furthermore, the government has suggested imposing an 18% tax on newborn milk products that cost no more than Rs600 per 200g, with an estimated income impact of almost Rs95 billion. This comprises sales of regular milk ($75 billion) and newborn milk products ($20 billion).
At a post-budget briefing on June 13, Finance Minister Muhammad Aurangzeb gave the people comfort, saying that the middle class should have a manageable amount of difficulty fulfilling the new tax requirements on milk products.
