Packaged Milk Prices to Increase by 18% with GST Implementation from July 1
Published on: June 30, 2024.
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Prices of essential items in Pakistan are expected to increase due to the government’s decision to impose an 18% General Sales Tax (GST) starting from July 1. The National Assembly (NA) has approved the Federal Budget for the fiscal year 2024-25, which includes this new tax measure. Along with packaged milk, the 18% GST will also be applied to herbal and homeopathic medicines, branded flour, packaged rice, lentils, and charitable and welfare hospitals. Despite the rejection of the proposal by the Senate Standing Committee on Finance, the government has proceeded with the decision, which is anticipated to impact low-income families who rely on these essential goods.
The approval of the Federal Budget comes at a time of rising concerns about inflation. The International Monetary Fund (IMF) has reportedly urged Pakistan to reduce sales tax exemptions, which is expected to contribute to the inflationary trend in the upcoming fiscal year. As a result, the prices of milk, tea, sugar, rice, and flour are expected to rise.
The Finance Bill, 2024, was passed by the National Assembly after a thorough reading and amendments process. All amendments proposed by opposition members were rejected, and the Finance Bill was passed by a majority vote. The budget has a total outlay of Rs18,870 billion and aims to address various economic challenges in the country.
However, the imposition of the 18% GST on essential items raises concerns about the affordability of basic necessities for many Pakistanis, putting additional financial pressure on the population.
Source: [The Current News](https://thecurrent.pk)
