Milk prices in Pakistan have risen by over 20% following the imposition of a new 18% tax on packaged milk, making it more expensive than in several developed countries. In Karachi, ultra-high temperature (UHT) milk now costs 370 rupees ($1.33) per liter, compared to $1.29 in Amsterdam, $1.23 in Paris, and $1.08 in Melbourne, as per Bloomberg data.
Milk prices in Pakistan surged by more than a fifth after a new tax was applied, making the dairy staple more expensive than in France, Australia and some other developed nations.
Ultra-high temperature, or UHT, milk now costs 370 rupees ($1.33) a liter in supermarkets in Karachi. That compares with $1.29 in Amsterdam, $1.23 in Paris, and $1.08 in Melbourne, according to data collected by Bloomberg.
An 18% tax was applied to packaged milk as part of taxation changes approved in the national budget last week. Previously, it was tax-exempt.
Costlier milk will add to rising inflation in the South Asian country, where wages have stagnated, eroding spending power. The increase may also worsen child health. About 40% of the nation lives in poverty.
“It will deny nutrition from a population that is already suffering from malnutrition,” Nasir said in a text message. About 60% of Pakistani children under 5 years suffer anemia and 40% suffer from stunting.
Pakistan raised taxes by 40%, the highest on record, in last week’s budget aimed at meeting conditions set by the International Monetary Fund for a new bailout.
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