LAHORE: The federal government is actively considering the removal of all taxes on infant milk powder in the upcoming fiscal year budget, announced Federal Minister for National Food Security and Research, Rana Tanveer Hussain. The minister shared this development during a meeting with a delegation from Nestle on Thursday, emphasizing the government’s commitment to making essential nutrition more affordable and accessible for Pakistani families.
Minister Hussain stated that minimizing taxes on infant milk powder is a top priority. He stressed that the product, crucial for the healthy growth and development of newborns and young children, should ideally be tax-free or subject to only minimal taxation.
Drawing parallels with international practices, the minister highlighted that countries like the United Kingdom, Ireland, Australia, and New Zealand treat infant milk powder as a basic nutritional necessity. He noted that these nations often exempt the product from Value Added Tax (VAT) and suggested Pakistan should explore similar policies to ease the financial burden on consumers.
In addition to tax considerations, Minister Hussain encouraged Nestle to increase their procurement and use of local fruits in their products. This, he noted, would not only support rural farmers but also contribute to the promotion of domestic agricultural production.
To further address the complexities surrounding infant milk powder taxation, the minister announced the formation of a dedicated committee. This committee will bring together all relevant stakeholders to solicit suggestions and develop practical recommendations for reducing taxes on the product.
