The Federal Board of Revenue (FBR) has imposed an 18 percent General Sales Tax (GST) on packaged food items, including formula milk, VOS News reported.
The decision was announced during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla.
Chairman FBR, Amjad Zubair, told the committee that the GST will apply to all packaged items, including departmental stores and large retail outlets, but not to unpacked food items sold at general stores.
The committee recommended a reduction in the GST on formula milk from 18% considering its importance for infant health.
Chairman FBR informed the committee that the tax revenue from formula milk is significant, and the government is willing to consider a reduction in tax rates if the companies reduce their prices.
The committee also discussed the issue of unregistered outlets selling formula milk and recommended that such outlets be blacklisted.
It is pertinent to mention here International Monetary Fund (IMF) mission earlier ‘asked’ Pakistani authorities to increase general sales tax (GST) to 18 per cent.
