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Heavy taxation on import of milk unjustified : Shahid Rasheed Butt

Shahid Rasheed ButtLahore : Islamabad Chamber of Small Traders on Sunday expressed serious concern on heavy taxation on local dairy industry and imported milk which has resulted in hike in the price of packaged milk twice in short span.

It asked the government to review taxes and take note of the situation as it will hit health of masses, especially babies half of whom are already underfed.

Talking to Tabassum Anwar, Chairperson of IWCCI Standing Committee on Trade and Industry, he said that prices of sugar have also been increased which is unjustified. He said that government has imposed 20 percent Customs duty and 25 percent regulatory duty on import of milk powder to please landed elite keeping in view the upcoming elections.

Shahid Rasheed Butt said that decision is unacceptable as masses should not pay the cost of ambitions of the political elite. He said that EU has given trade relaxations to Pakistan while our policy makers have returned the favour by imposing additional taxes on their exports which may compel them to change mind which will damage dwindling exports.

Additional taxes has also pushed the local dairy sector into crisis which has increased cost of doing business. He noted that the revenue measures will result in around thirty percent fall in the demand of milk hitting masses and people linked to the business.

Pakistan is the third largest milk producer in the world producing around 55 million tonnes of milk, production in increasing by 4 pc per annum while demand in increasing by 15 percent annually.

Pakistan exports skimmed and fresh mils while it also imports 40 thousand tonnes of milk, mainly from India, which is equal to 3,20,000 tonnes of fresh milk, he informed.

The global milk demand is set to increase by 36 percent in nine years which can be an opportunity for Pakistan.

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