Govt Considers Complete Withdrawal of Taxes on Infant Milk Powder in FY26 Budget

The federal government is considering removing all taxes on infant milk powder in the upcoming fiscal year budget, Food Minister Rana Tanveer Hussain revealed in a meeting with Nestle on Thursday. The minister assured that the government was actively working on this matter and had given top priority to minimizing taxes on infant milk powder. He said infant milk powder should either be tax-free or subject to minimal taxes. The minister also gave examples from other countries like the United Kingdom, Ireland, Australia, and New Zealand, where infant milk powder is either exempt from taxes or treated as a basic nutritional necessity. He pointed out that these countries do not apply Value Added Tax (VAT) to infant milk powder and suggested Pakistan should adopt similar policies. He encouraged Nestle to increase the use of local fruits in their products to support rural farmers and promote domestic agricultural production. The minister also announced the formation of a committee to address key issues related to infant milk powder taxes. This committee will invite all stakeholders to contribute suggestions, with a focus on practical measures to reduce taxes on the product.