Pakistan slaps 25% sales tax on imported pet food
The new measure could be a good opportunity for local players to gain market share.
Effective 8 March 2023, the Pakistan government raised the import tax on pet food products from 17% to 25%. This increase also affects other products, including processed meats, fish, fruit and vegetables, and confectionery.
The new tax slab is expected to negatively impact the pet food sector, which is already struggling with other challenges such as inflation, supply chain issues, and the devaluation of the local currency.
Rafae Dossal, CEO of local pet food manufacturer Waggles Pet Foods said that imported pet food has become “exorbitantly expensive” since introducing the new tax system.
“Given how imported pet food products are now [even] more expensive, local manufacturers like ourselves [can] capture higher market share,” he added.
The company has already witnessed double the increase in its sales volume and expects it to continue as the country battles with the ongoing economic crisis.
The country had banned the import of “luxury goods,” including pet food, which was later revoked.
According to the Pakistan Kennel Club (PKC), 40 to 45 dog and cat food companies export more than 150 pet food products to the South Asian country