ISLAMABAD: The federal government is considering the abolition of taxes on infant milk powder, recognising its importance for the growth and nourishment of newborns and young children.

This was indicated by Minister for National Food Security and Research Rana Tanveer Hussain while talking to a delegation of a Swiss multinational food and drink processing conglomerate corporation on Thursday.

The minister assured the delegation that the ministry is seriously working on this matter and that positive progress is expected soon.

Mr Tanveer said the government’s top priority is to minimise taxes on infant milk powder, ensuring that every citizen has easy access to this essential commodity.

Infant milk is directly related to the growth and nourishment of newborns and young children. Therefore, it should either be tax-free or subject to minimal taxes.

During the meeting, the Nestle delegation highlighted various issues faced by the industry, particularly focusing on the taxes imposed on infant milk powder.

The minister also cited examples from other countries where infant milk powder is exempted from taxes, and pointed out that in the United Kingdom and Ireland, there is no Value Added Tax (VAT) on infant milk powder. Similarly, in Australia and New Zealand, infant formula is considered a basic nutritional necessity and is therefore exempt from taxes.

Referring to the policies of these countries, he emphasised the need for Pakistan to adopt a similar approach so that every family can easily access quality milk for their children.

The minister urged the Nestle delegation to maximise the use of local fruits in their products to benefit rural farmers and promote domestic agricultural production. He mentioned that many rural families rely on producing and selling milk for their livelihood, and the government will make every effort to improve their economic conditions.

Rana Tanveer further announced that his ministry would formulate a committee to address important issues, inviting all stakeholders to participate. Through this consultative process, practical suggestions for reducing taxes on infant milk powder will be thoroughly discussed.

Published in Dawn, May 16th, 2025