Jam Kamal Khan has directed authorities to prepare a proposal to reduce the general sales tax (GST) on dairy products from 18% to 10%, aiming to provide relief and boost Pakistan’s dairy industry.
The minister chaired a meeting with representatives of the Pakistan Dairy Association, led by CEO Dr Shehzad Amin. Rana Ihsaan Afzal also joined virtually along with senior officials from the Ministry of Commerce.
Discussions focused on key challenges facing the dairy sector, particularly taxation, tariffs, productivity, genetic quality, and the need to formalise the industry.
Kamal stressed the importance of improving dairy breed genetics and guiding farmers toward formal business practices, noting that better structure, regulation, and education are essential for higher milk yields and long-term sector growth.
The association highlighted that the current 18% GST on dairy products is significantly higher than global and regional standards, where such items are often taxed minimally or not at all.
In response, the minister asked the association to submit detailed recommendations for reducing GST to 10%, while directing Rana Ihsaan Afzal to lead coordination efforts in developing a comprehensive proposal.
Kamal also said he would engage provincial leadership by writing to chief ministers and relevant ministers to ensure nationwide coordination for implementing reforms and promoting sector formalisation.
Additional proposals from the association included expanding financial and banking support for farmers, enforcing regulations to ensure only pasteurised and properly packaged milk is sold, and launching pilot programmes in major cities to help transition farmers into the formal economy.
They also emphasised the need for cross-breeding initiatives and farmer training programmes to improve genetic quality and overall milk production.
Jam Kamal welcomed the recommendations and called for a well-structured plan to be developed promptly, with the goal of increasing productivity, strengthening regulatory compliance, and enhancing the dairy sector’s contribution to the national economy.
