Govt to Impose 18% Sales Tax On Milk

The federal government has proposed to impose an 18 percent sales tax on milk and fat-filled milk (presently zero-rated) in the new federal budget 2024-25.

According to the details, the government has proposed to tax infant milk items not exceeding Rs. 600 per 200g at the rate of 18 percent.

If these taxes are approved, the total revenue impact would be around Rs. 95 billion (Rs. 75 billion standard milk + Rs. 20 billion infant milk).


Following his budget presentation a day earlier, Finance Minister Muhammad Aurangzeb at the post-budget briefing on Thursday said the middle class shouldn’t find it difficult to pay an 18 percent sales tax on milk products.

The revenue impact of Rs. 75 billion from the 18 percent tax on standard milk is the same as the budget allocated for parliamentarian schemes for the new fiscal year.

The price of milk is currently Rs. 290 per liter, but it is expected to rise to Rs. 342 per liter following the 18 percent sales tax.


View Comments

  • As always govt fails to realise that making products expensive does not directly lead to increased revenue, rather people start buying less and you are left with missed revenue targets.

  • Shameful and nothing else. Look at India. They have a tax rate of 5 percent on UHT Milk and 0 percent on fresh milk. Milk is a necessary product and one cannot put tax on it like that.

  • What else can be expected of such insensitive leaders. The world over, milk is considered an essential food item of daily use for the rich and the poor alike and is included in the list of items for subsidy. Here everything is abnormal. Already far beyond the common man's reach, milk will now be a luxury item if further taxes are imposed. Remember, what is available in the market is not pure milk and it has got all the unhygienic stuff you can think of. And the price? You know well.

  • Sales tax do phir GST do children ki fees do, heath issues hon tu private kar wa hon, gas per tax do electricity per tax do, saaf Pani khud purchase karo.

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ProPK Staff