- Finance Minister Shaukat Tarin directs FBR to ensure previous rate is incorporated in final budget to be passed by Parliament
ISLAMABAD: Federal Finance Minister Shaukat Tarin has directed the Federal Board of Revenue (FBR) chairman to ensure to reinstate the previous sales tax of 10 percent on value-added dairy products, and that the said changes were incorporated in the final budget to be passed by the Parliament.
Chairman Pakistan Dairy Association (PDA) Ali Ahmed Khan, along with other members of the PDA, had earlier met the finance minister, commerce minister, and the FBR chairman on Friday to discuss the taxation issues of the dairy sector.
The finance minister committed to the dairy sector to remove sales tax anomalies from the Finance Budget 2021-2022 and previous budgets, and to reinstate the previous sales tax of 10 percent on value-added dairy products. The minister also agreed to restore the liquid milk segment, which is vital for nutrition among children and to make dairy products safe, to the zero-rated tax regime. Both sides agreed that these steps would further the government’s efforts to provide affordable nutrition to all Pakistanis, as well as support the farmers of Pakistan.
The finance minister asked the FBR chairman to ensure that the above changes were incorporated in the final budget to be passed by the Parliament.
“Pakistan Dairy Association will work closely with Prime Minister’s program to promote safe, healthy and nutritional dairy products, fight against stunting and malnutrition, improve the livelihood of farmers and provide safe milk to build a strong nation,” PDA chairman Ali Ahmed Khan said. The minister asked the FBR to work closely with the PDA team and develop a program to provide incentives to the dairy industry to make safe and nutritional products affordable. With the intent of sustainable development of dairy in Pakistan, the dairy industry proposes a three-year program of consistent policies in taxation regime, which will allow them to reinvest a major part of the incentive for the growth of dairy sector, to develop farmer’s capabilities, and to increase the awareness of nutrition through safe milk among people of Pakistan. “Pakistan Dairy Association admires the vision of Prime Minister Imran Khan to fight against malnutrition. The prime minister has consistently brought the issue into the limelight, proving his passion to build a strong nation through development of strong human capital. We stand committed to partner with him in his mission, through providing safe and nutritious affordable dairy products for all Pakistanis. We would like to thank the Prime Minister for giving us the opportunity to do so by through the initiatives he has agreed on in this budget” Chairman PDA Ali Ahmed Khan said.
The PDA extends its deep gratitude to the finance minister and the commerce minister for understanding the challenges and supporting the dairy industry, he said. The PDA is also grateful to the chairman FBR and his team for their pro-business approach, for their understanding of the dairy sector’s issues, and for their commitment to drive revenue through growth by facilitating industry, he said.
Copyright Business Recorder, 2021