Inflation & Prices
Pakistan Imposed a Milk Tax, Now the Dairy Staple Costs More in Karachi Than Paris
- Shelf-stable milk costs $1.33 a liter in Karachi supermarkets
- Prices jumped as much as 25% after last week’s tax changes
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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.