ISLAMABAD – Pakistanis are likely to bear brunt of new taxes being considered on several food and beverages in Budget 2025-26.
The federal government is working on upcoming fiscal year’s budget, and there are new taxes being considered on food and beverage products to boost revenue amid economic challenges.
As per available information, excise duties on sodas and other fruit juices are slated to increase by up to 30-40 percent, while bakery items will also get expensive.
The government is also looking to add a tax on industrial dairy products, which could affect the prices of milk, yogurt, cheese, and other products. Furthermore, processed meat products may become more expensive under the new tax structure.
Budget 2025-26
Bakery items, chewing gum, candies, chocolates, caramels, and certain bakery items could face sharp increase in prices over next three years.
Here’s a clear and organized table listing all the food and beverage products mentioned, along with the proposed tax impact based on the information provided:
| Category | Products | Proposed Tax |
|---|---|---|
| Beverages | Sodas, Fruit Juices, Sweetened Beverages | Excise duty up by 30–40% |
| Dairy Products | Milk (industrial), Yogurt, Cheese, Other Industrial Dairy Items | New taxs |
| Processed Meats | Sausages, Salted Meats, Dried Meats, Smoked Meats | New Taxes |
| Bakery Goods | Bread, Pastries, Cakes, Other Commercial Bakery Items | Health Tax |
| Confectionery | Chewing Gum, Candies, Chocolates, Caramels | Health Tax |
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The coalition government is working to chalk out strategy to expand tax base and secure additional funding while inflation-weary citizens are expressing concerns that these increases could deepen the financial burden.
The exact taxation on edibles is yet to come out as there are further details to be unveiled in the coming weeks.
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