ISLAMABAD, May 15, 2025 — Federal Minister for National Food Security and Research, Rana Tanveer Hussain, has assured Nestlé Pakistan of the government’s firm commitment to reducing or eliminating taxes on infant milk powder, recognizing its critical role in child nutrition and development.
In a meeting with a senior delegation from Nestlé, key challenges faced by the dairy and nutrition sector were discussed, with particular emphasis on the taxation of infant milk products. The delegation expressed concerns about the rising cost of infant milk powder due to taxation, which affects the accessibility and affordability of this essential nutritional item for families across Pakistan.
Minister Hussain emphasized that ensuring affordable infant milk is a top government priority. “Infant milk is vital for the health and nourishment of newborns and toddlers. It should be available to every household without the burden of excessive taxation,” he stated. He added that the Ministry of National Food Security and Research is actively working toward a policy framework that would exempt or significantly reduce taxes on infant milk powder.
Citing global practices, the minister highlighted how countries like the United Kingdom, Ireland, Australia, and New Zealand have exempted infant milk formula from value-added taxes (VAT), recognizing it as a basic nutritional necessity. “Pakistan must adopt similar measures to ensure universal access to high-quality milk-based nutrition for its youngest citizens,” he said.
Beyond addressing taxation issues, the Minister encouraged Nestlé to expand the use of local agricultural produce in its product range. He urged the company to incorporate more indigenous fruits and milk in its offerings, which would support rural farmers and contribute to the country’s agricultural economy.
To address the issue holistically, Rana Tanveer Hussain announced the formation of a multi-stakeholder committee. This body will include industry representatives, policymakers, and public health experts to evaluate proposals and finalize practical strategies to make infant milk powder more affordable. Through collaborative efforts, the government aims to ensure that every child in Pakistan has access to safe and affordable nutrition from birth.