Removal of existing 10% ST proposed to promote local powdered milk production

ISLAMABAD, Dec 16: Ministry of National Food Security and Research has proposed to remove existing 10 per cent Sales Tax (ST) on locally manufactured powdered milk to promote its production.

The other proposal is to increase duty on import of dry milk powder to discourage its import.

Official sources said Pakistan has imported on an average 55,000 tons of powdered milk (skimmed milk powder, whey powder, growing up milk powders/infant formulas) each year.

The main reasons of import of powdered milk (skimmed milk powder, whey powder, growing up milk powders/ infant formulas etc.) in Pakistan are low productivity of indigenous dairy animals and rising demand of milk and milk products during lean period (May to September), usage of recipe dairy/ milk formulas/products etc. and high input cost of local milk production encourages import of dry milk powder.

The sources said current estimated production of powdered milk is around 67,000 tons annually in the country.

(APP)