A new budget passed in the National Assembly on Friday will come into effect on July 1. 18% of the sales tax was imposed on many consumer goods, including packaged milk.
The new price of a 1-liter package of milk has increased to 370 rupees with an increase of 75 rupees per liter; previously, it was sold for 295 rupees.
Friesland Campina Engra Pakistan Limited, the manufacturers of Olper’s milk and dairy products, stated, they have no choice other than increasing prices to meet the cost of production.
Other dairy companies will also increase prices with the same tax rates.
The government also implemented an 18% sales tax on infant ‘powder milks, proposing not to cross above Rs 600 on 200 gm.
With such price hikes, people will hardly afford their basic needs, but the finance minister is of the opinion that these prices are not out of reach of the middle class.
