The federal government is considering imposing a 5% federal excise duty on more than 50 highly processed (ready-made) food items in the budget for the upcoming fiscal year 2025–26 to increase indirect tax revenue.
According to a report by ProPakistani citing sources in the Federal Board of Revenue (FBR), the proposed duty could apply to items such as frozen foods, chips, beverages, noodles, biscuits, ice cream, frozen meat, chutneys, ready-to-eat meals, sausages, and other various processed food items.
The officials state that the aim of this measure is to significantly increase revenue in the next fiscal year. If this proposal is approved, it will be the government’s largest effort in terms of indirect tax revenue and is part of the government’s strategy to expand the scope of federal excise duty.
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The proposal is currently under consideration and is expected to be included in the upcoming budget discussions.
