KARACHI: Buyers of infant, fortified and packed milk products find it irritating that these items do not carry the sticker price after the post-budget imposition of 18 per cent general sales tax.

For example, the price of 400-gram-packs of Lactogen 1, 2 and 3 has gone up to Rs 1,370 from Rs 1,180 before the budget.

A 175-gram pack of Cerelac is now priced at Rs 450, as against Rs 400 before the budget, while a 900-gram pack of Nido now carries a consumer price of Rs 2,350, up from Rs 1,950.

An official at a milk manufacturing company said, “since liquid milk, infant formula and children’s milk products are under a standard rate of 18pc general sales tax, they do not require that price be mentioned on packaging”.

On the other hand, he added, since products like biscuits, chocolates, carbonated beverages, fruit juices, water, tea, toothpaste and bread are under the third schedule of GST (18pc), printing of final prices and tax on the packaging is required under the law.

The official said packaged products fall within the purview of federal GST, meaning no “price interference” in such categories. The provincial government deals with loose products like loose milk, lentils, flour and tea.

The manufacturer said the prices of locally produced infant formula and fortified children’s milk had gone up by 15-18pc while some cost is absorbed by the brands.

He said it was up to a retailer to determine how much discount to offer on prices announced by the manufacturer.

The official claimed the prices of a few imported brands had also gone up by five to 10pc even though an 18pc GST is already imposed on them.

He said the prices of packaged milk products like Milkpak, Olpers, Nurpur had risen to Rs 340-360 per litre from Rs 260-290 before the budget.

A few years ago the city government of Karachi called out manufacturers of locally produced milk on the price-fixing issue, but the manufacturers argued that the regulator had nothing to do with this commodity.

Farid Qureishi, general secretary of the Karachi Retail Grocers Group (KRGG), said, “whatever the law, the manufacturers should print prices of milk items as consumers always accuse retailers of overcharging them”.

Dawn asked an official at the Commissioner’s office whether the Commissioner had any power to force manufacturers to print prices on packed milk items, he said he had already put the query to an official concerned. But no reply came till the filing of this report.

Published in Dawn, July 12th, 2024