Packaged Milk Prices Rise by 25% Due to New Taxes
The price of packaged milk has risen by Rs. 75 per liter, or 25%, following the new federal budget that went into effect today.
Packaged milk now costs Rs. 370 per liter, up from Rs. 295 last year. This increase is due to an 18% sales tax and a 2.5% tax on retailers.
FrieslandCampina Engro Pakistan Limited has announced a price hike for its milk products starting July 1, 2024. This is due to higher production costs and economic factors affecting the dairy industry.
The price for a 1000ml pack of Olper’s milk will increase according to the new rates. Other companies and vendors have also raised their prices from July 1, 2024, due to the new taxes.
Consumer Price | Price for Un-Registered Retailer | Price for Registered Retailer |
Packs/Carton |
Pack Size | Product | |||
Rate/Pack | Rate/Carton | Rate/Pack | Rate/Carton | Rate/Pack | Rate/Carton | |||
Rs. 370 | Rs. 4,440 | Rs. 353.45 | Rs. 4,241.38 | Rs. 346.55 | Rs. 4,158.62 | 12 | 1 Liter | Olper’s |
The government plans to impose an 18% tax on infant milk items priced up to Rs. 600 per 200g. The total revenue impact from these taxes is estimated to be around Rs. 95 billion, with Rs. 75 billion from standard milk and Rs. 20 billion from infant milk.
Despite the high rates, Finance Minister Muhammad Aurangzeb stated on June 13 that the middle class should manage the 18% sales tax on milk products.
