In Pakistan, milk prices rose by more than 20 percent after new taxes were introduced, making dairy products more expensive than in France, Australia and other developed countries.
In Karachi supermarkets, ultra-high-temperature (UHT) milk now sells for 370 rupees ($1.33) a litre. In Amsterdam, it costs $1.29, in Paris $1.23 and in Melbourne $1.08, according to data compiled by Bloomberg. As part of tax reforms approved in the national budget last week, packaged milk is now taxed at 18%; it was previously tax-free.
Muhammad Nasir, a spokesman for the local unit of Dutch dairy maker Royal FrieslandCampina NV, said before the tariffs, which raised retail prices by as much as 25 percent, milk costs were comparable to those in developing countries such as Vietnam and Nigeria.
Higher milk prices would fuel inflation in the South Asian country, where wages have stagnated and purchasing power has fallen. Higher milk prices could also worsen children’s health, and about 40 percent of the population lives in poverty.
“This will deprive a population that is already suffering from malnutrition,” Nasir said in a text message. Around 60 percent of Pakistan’s children under five suffer from anemia and 40 percent are stunted.
Pakistan implemented a record 40 percent tax increase in its budget last week, aiming to meet the terms of a new bailout set by the International Monetary Fund.
In Karachi supermarkets, ultra-high-temperature (UHT) milk now sells for 370 rupees ($1.33) a litre. In Amsterdam, it costs $1.29, in Paris $1.23 and in Melbourne $1.08, according to data compiled by Bloomberg. As part of tax reforms approved in the national budget last week, packaged milk is now taxed at 18%; it was previously tax-free.
Muhammad Nasir, a spokesman for the local unit of Dutch dairy maker Royal FrieslandCampina NV, said before the tariffs, which raised retail prices by as much as 25 percent, milk costs were comparable to those in developing countries such as Vietnam and Nigeria.
Higher milk prices would fuel inflation in the South Asian country, where wages have stagnated and purchasing power has fallen. Higher milk prices could also worsen children’s health, and about 40 percent of the population lives in poverty.
“This will deprive a population that is already suffering from malnutrition,” Nasir said in a text message. Around 60 percent of Pakistan’s children under five suffer from anemia and 40 percent are stunted.
Pakistan implemented a record 40 percent tax increase in its budget last week, aiming to meet the terms of a new bailout set by the International Monetary Fund.
