Is GST Imposition Turning the Milk Sour?

Abstract

Milk is an essential part of the balanced diet and plays pivotal role in the physical and mental wellbeing of individuals. Considering its importance for human health, safe and pure milk should be available to every person. Unfortunately, in Pakistan almost 40% population hardly has access to necessary food items due to poverty. The imposition of general sales tax on the packaged milk had made it further difficult for general population to consume pasteurized milk. Pakistan is one of the biggest milk producing countries in the world. Despite this, sale and purchase of the significant volume of milk remains unmonitored and milk supply chain is managed through traditional milkmen in the form of loose milk. Loose milk is highly adulterated and contaminated with various chemicals and microorganism which render it unfit for the human consumption. Consumption of unhygienic milk may compromise the health and growth of individuals. The significance of this study is to evaluate the socioeconomic impact of imposition of tax on milk. As per the outcomes of the qualitative analysis of study; Government should withdraw this and reconsider other dietary provisions for the levy of tax to generate revenue for national exchequer