The federal government of Pakistan is considering raising taxes on various food and beverage items in the upcoming budget to meet the International Monetary Fund (IMF) demand for increased tax revenue.
According to a private TV channel report citing sources, the prices of soft drinks, sweetened beverages, juices, carbonated soda water, flavored sweets, and sugar-free confections may increase significantly.
The government is considering doubling the tax duty from 20% to 40% on these products.
Federal Board of Revenue (FBR) sources indicated that the proposed tax hikes could apply to carbonated drinks made from juice or pulp, syrups, and squashes, as well as industrially produced dairy items.
There is also a potential price hike for sausages, dried, salted, and smoked meats.
Additionally, chewing gum, candies, chocolates, caramels, pastries, biscuits, corn flakes, and various cereals might face up to a 50% increase in tax, making them more expensive for consumers.
Other items under consideration for tax hikes include ice cream, flavored or sweetened yogurt, frozen desserts, and all products made from animal or vegetable fat.
Over the next three years, the government may gradually increase taxes on these products by up to 50%.
