Chips, noodles, ice cream & biscuits to get expensive in budget 2024-25

The upcoming federal budget for 2024–25 is expected to introduce additional financial pressure on citizens, as the government considers a series of new and increased taxes. Among the key proposals is a 5% federal excise duty (FED) on over 50 categories of ultra-processed foods.

This would apply to a broad range of consumer items such as frozen foods, chips, carbonated drinks, instant noodles, ice cream, biscuits, ready-made meals, sausages, and sauces.

If implemented, this measure could become one of the most significant sources of indirect tax revenue in the upcoming fiscal year. The proposal remains under review, with a final decision pending.

Meanwhile, the packaged juice industry is urging tax relief in the next budget cycle. Industry stakeholders are calling for a reduction in the current 20% FED by at least five percentage points, arguing that the existing tax burden—combined with 18% general sales tax—is hampering growth.

Since the introduction of the FED in 2023, the sector has seen a 45% decline in sales volume, with revenues dropping from Rs72 billion to Rs42 billion. The resulting shift in consumer behavior toward low-quality, unregulated alternatives has further eroded both industry viability and government tax revenue.