The Federal Board of Income (FBR) has advised lowering real estate withholding tax rates and beverage and tobacco Federal Excise Duty (FED) to boost sales and income. Before finalizing these plans, the government and IMF must evaluate and approve them.
Funding Shortfall and Policy Changes
Recent collections missed targets, leaving the FBR a Rs600 billion income deficit. Because they have few options for new taxes, the authorities are focusing on policy adjustments to increase revenue collection and compliance without burdening current taxpayers.
GST Analysis on Prepackaged Milk
Due to heavy opposition from the Pakistan Dairy Association (PDA), the government is also considering the 18% GST on bottled milk. Rana Tanveer Hussain, national food security and research minister, discussed this with PDA representatives.
GST Impact on Dairy Industry
Some dairy sector members worry that the GST is raising milk prices and inhibiting investment. Minister Hussain acknowledged the business challengesĀ during the discussion and called for legal changes to modernise the dairy sector.
Furthermore, Pakistan is one of the world\'s largest milk producers, producing around 70 million tonnes annually. Strategic investments could boost sector productivity, he said.
Dairy Industry Policies Need Change
According to Hussain, if the dairy industry conformed to international norms, productivity, product quality, and food security would all significantly improve.
Because of the GST\'s impact on affordability and its discouraging effect on investment in advanced dairy farming practices.
Finally, the PDA delegation urged the government to reconsider. They noted that the tax burden is worsening dairy farmers\' energy and feed price issues.
Government Support for Dairy Producers
Hussain promised the PDA delegation that the Ministry of National Food Security and Research would work with the Ministry of Finance to study relief measures. He said the government would support dairy farmers and ensure a steady supply of premium dairy products.