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ECONOMY

VAT cut on buttermilk could curb imports, promote local dairy

The DAN claims that branding and distributing buttermilk would help manage milk produced by local farmers and has requested the government to adopt policies that encourage its promotion.
By REPUBLICA

KATHMANDU, April 28: The Dairy Association Nepal (DAN) has urged the government to promote the branding of traditional Nepali buttermilk.


The DAN claims that branding and distributing buttermilk would help manage milk produced by local farmers and has requested the government to adopt policies that encourage its promotion.


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Protect Interests of Domestic Farmers


In a memorandum submitted to the Ministry of Agriculture and Livestock Development, the association called for the removal of Value Added Tax (VAT) on buttermilk, butter, and ghee in the upcoming fiscal year’s budget.


“Exempting VAT on food items like butter, ghee, and mohee would reduce the financial burden on consumers and increase the consumption of mohee, helping replace imported dairy products and generate local employment,” the memorandum states.


The DAN also holds that removing VAT on buttermilk would discourage the use of imported beverages.





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