Higher Taxes on Sugary Drinks and Processed Food Proposed

Staff Report:

Islamabad: Health Ministry has proposed the government to increase tax on sugary drinks and imposition of federal excise duty on ultra-processed products in upcoming budget 2025-26.

At present, the tax rate amounts to 20 percent which is being considered to raise to 40 percent in upcoming budget.

The tax rate was raised from 13 to 20 percent two years back with a commitment to increase 10 percent every year. But no commitment was fulfilled.

Moreover, there is no tax on ultrafoods and the health ministry wants to impose 20 percent federal excise duty on it in the upcoming budget to discourage its use in an order to save the lives of the millions.GSMA Calls for Abolishing Taxes on Mobile Services

However, the multinational companies operating in Pakistan have been building pressure on the governments during different tenure to continue increase in sales volume.

Secretary General , Director Operations (Pakistan National Heart Association (PANAH) Sanaullah Ghumman the media and said that health ministry had prepared a proposal to increase taxes on sugary drinks. It had also proposed to impose federal excise duty on ultra processed products that is zero at present.

He also suggested to increase tax to 40 percent as different countries had imposed 50 percent taxes on sugary drinks.

He said that government could raise $ 810 million revenue by imposing 50 percent.

Responding to question, he said that issue was also being taken up with Special Investment Facilitation Council (SIFC) to address issue of taxes on sugar drinks and ultra-process food products.

He added that 2200 person died daily due to non- communicable diseases that can be avoided by imposing higher taxes.

Pakistan is struggling to address issue of non-communicable diseases (NCDs).These diseases included diabetes, cardiovascular conditions, obesity, and chronic liver. Kidney diseases had also become increasingly prevalent.

The country has now ranked first in the world regarding diabetes prevalence. As many as 31.4% of adults aged 20–79 have been suffering from this disease.

He also claimed that over 230,000 deaths had happened annually due to diabetes-related complications. He further said that over nine million individuals have remained undiagnosed.

Pakistan is spending only $79 per capita to address this escalating crisis.