While Pakistan prepares for Budget 2025-26, the government is planning to impose fresh taxes on food and beverages—the inflation-hit public is apprehensive about one more hike in the cost of living.
Sources reveal that excise duties on sodas and fruit juices may see a hefty increase of 30 to 40 per cent. But that’s just the beginning.
Bakery items, including bread, pastries, and cakes, might fall under a health tax, making your morning breakfast and tea-time snacks more expensive. Even chewing gum, candies, chocolates, and caramels—popular among kids and adults alike—are expected to face the same tax bracket.
The blow doesn’t stop there. Industrial dairy products like packaged milk, yoghurt, cheese, and other processed dairy items could also come under the tax net, along with processed meat products such as sausages, smoked meats, and salted meats.
Here's a quick look at what's on the chopping block:
Category | Products | Proposed Tax |
Beverages | Sodas, Fruit Juices, Sweetened Beverages | Excise Duty +30–40% |
Dairy Products | Milk (industrial), Yogurt, Cheese, Others | New Taxes |
Processed Meats | Sausages, Salted/Dried/Smoked Meats | New Taxes |
Bakery Goods | Bread, Pastries, Cakes, Commercial Bakery Items | Health Tax |
Confectionery | Chewing Gum, Candies, Chocolates, Caramels | Health Tax |
The government says these taxes are part of a broader plan to increase revenue and widen the tax base, but many citizens feel this move will only tighten the financial noose on ordinary people already dealing with high inflation.
As of now, the final decisions are still being fine-tuned and will be made public in the coming weeks. Until then, families are bracing themselves for what could be a more expensive daily routine.