ISLAMABAD – The processed food like chips, soft drinks, noodles, ice cream and biscuits are likely to get pricier in the upcoming federal budget for Fiscal Year 2025-26, which is due to be announced on Tuesday (today).
The sources said that the federal government is likely to impose new excise duties on a wide range of processed food items including chips, soft drinks, noodles, ice cream and biscuits in upcoming federal budget for Fiscal Year 2025-26, which his set to be presented in the National Assembly today.
The government is also likely to impose new excise duties even on e-commerce services in the budget for the fiscal year 2025–26.
The sources said that the government is considering levying excise duty on commonly consumed items such as frozen foods, chips, soft drinks, noodles, ice cream and biscuits.
“A 5% excise duty has also been proposed on frozen meat, sauces, and ready-to-eat meals,” said the sources, adding that the various other processed food products might be brought under the excise duty net as part of efforts to widen the tax base.
In addition, the government is proposing an 18% sales tax on e-commerce transactions.
The federal budget for FY 2025–26 is expected to be around Rs18 trillion, with approximately Rs2 trillion in new taxes aimed at meeting revenue targets and complying with conditions set by the International Monetary Fund (IMF). The proposed tax measures reflect the government’s focus on expanding revenue generation through indirect taxation.
Earlier in the day, Pakistan Stock Exchange (PSX) witnessed a strong bullish trend on Tuesday, with the benchmark KSE-100 Index climbing over 787 points amid renewed investor confidence and anticipation surrounding the federal budget for the financial year 2025–26, which is set to be unveiled today.
On the first trading day after the Eid-ul-Azha holidays, the market opened on a positive note, gaining 324 points in early hours of trade.
The initial surge pushed the KSE-100 Index to 121,900 points.
As the session progressed, the upward momentum continued, with the index hitting a new intraday high of 122,400 points.
The strong rally is being attributed to investors’ optimism ahead of the federal budget, with expectations of business-friendly policies, potential tax relief measures, and steps to stabilise the macroeconomic environment.
It may be mentioned here that the KSE-100 had previously touched a record high of 122,281 points on June 5, a level that was surpassed today, underlining the strength of the current rally.
Pakistan govt set to present Rs17.6tr budget for 2025-26 on Tuesday
