The price of packaged milk has risen by Rs. 75 per liter or 25 percent following the full implementation of the federal government’s pro-IMF budget today.
As of July 1, 2024, packaged milk now costs Rs. 370 per liter, up from Rs. 295 per liter in the previous fiscal year, due to an 18 percent sales tax and a 2.5 percent tax on retailers.
FrieslandCampina Engro Pakistan Limited has announced an increase in the prices of its milk products, effective from July 1, 2024. The company attributed this rise to escalating production costs and economic factors affecting the dairy industry, as stated in its recent advertisement.
Other companies and vendors have also adjusted their prices for packaged milk starting July 1, 2024, to account for the impact of the 18 percent sales tax and 2.5 percent retailer tax under the Finance Bill 2024.
The government’s budget proposal includes an 18 percent tax on infant milk products priced not exceeding Rs. 600 per 200g, expected to generate approximately Rs. 95 billion in revenue (Rs. 75 billion from standard milk and Rs. 20 billion from infant milk).
Finance Minister Muhammad Aurangzeb commented during his post-budget briefing on June 13 that while these tax rates are substantial, the middle class should find them manageable for milk product purchases.
