In a recent meeting with Nestlé officials, Federal Minister for Food Security Rana Tanveer Hussain shared that the government is seriously considering removing all taxes on infant milk powder in the upcoming federal budget.
The minister stated that reducing the cost of essential nutrition for infants had become a top priority and emphasized the need for either zero tax or minimal duties on the product.
He referred to international practices in countries such as the UK, Ireland, Australia, and New Zealand, where infant milk powder is treated as a basic nutritional item and remains free from Value Added Tax (VAT). He suggested that Pakistan should follow a similar model to ease the financial burden on families.
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To take this proposal forward, a committee has been set up to review the taxation structure. The group will include various stakeholders and will be tasked with presenting practical suggestions for reducing or eliminating taxes on infant milk powder.
Additionally, the minister urged Nestlé to use more local fruits in its products. He believed this step could support rural farmers and help boost the domestic agriculture sector, creating broader economic benefits.