ISLAMABAD – Junk food lovers in Pakistan to face an additional 20 percent health tax on bakery goods as the government is looking to promote healthy lifestyle and to tap new sectors to boost revenue.
A report shared by Daily Jang said the coalition government is planning to promote healthier lifestyles, and the Ministry of Health proposed a 20% health tax on a wide range of processed and ultra-processed food and beverage items in the upcoming 2025-26 federal budget.
The targeted products include popular bakery and confectionery goods, which are often linked to rising health concerns such as obesity, diabetes, and heart disease.
The proposal also includes increasing the existing Federal Excise Duty (FED) on certain unhealthy products from 20% to 40%. In a long-term move, officials recommended raising this rate to 50pc by the fiscal year 2028-29 to further discourage the consumption of non-nutritious, heavily processed items.
A comprehensive report titled “Sustainable Taxation Policy on Ultra-Processed Foods and Beverages for Public Health” has been compiled and shared with key stakeholders, including the Ministry of Finance and the Federal Board of Revenue (FBR). The report is currently under review as part of the budget formulation process for the upcoming fiscal year.
Officials believe this health tax could play a vital role in curbing the growing trend of diet-related diseases in Pakistan, while also generating significant revenue for public health initiatives.
If approved, the tax policy is expected to have wide-reaching impacts on the food industry, public consumption habits, and the broader national health outlook.
