ISLAMABAD: The prices of packaged milk in Pakistan will surge as the government imposed an 18 per cent general sales (GST) in the Budget 2024-25, which will take effect from July 1+.
Following the passage of Budget 2024-25 by National Assembly (NA) today, an 18pc GST has been imposed on packaged milk, herbal and homeopathic medicines, and food items, including branded flour, packaged rice and lentils.
The Senate Standing Committee on Finance had rejected the proposal, but the government has gone ahead with the decision. The sales tax will also apply to charitable and welfare hospitals.
The move is expected to increase the cost of living for many Pakistanis, particularly low-income families who rely on these essential items.
Earlier, it was reported that inflation will likely increase in the 2024-25 federal budget as the International Monetary Fund (IMF) has ‘asked’ Pakistan to further reduce sales exemptions.
The prices of milk, tea, sugar, rice, flour, and packed milk are likely to increase in the budget 2024-25 as the international lender has asked Islamabad further to reduce the sales tax exemptions for fresh loan.
The National Assembly (NA) approved the Federal Budget for the fiscal year 2024-25 with a total outlay of Rs18,870 billion.
Minister for Finance and Revenue Muhammad Aurangzeb moved the motion for consideration of the Finance Bill, 2024 to give effect to the financial proposals of the federal government for the year, commencing on July 1, 2024.
The motion was passed with majority vote which led to the passage of Finance Bill-2024 after clause-by-clause reading and adopting amendments after due process of voting. All the amendments, presented by the opposition members, were rejected.
