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Pakistan Plans to Double Tax on Sugary Drinks, Proposes New Levy on Ultra-Processed Foods

Health Crisis Alert: 230,000 Annual Deaths Spur Call for Stricter Food Taxes in Pakistan

Pakistan Plans to Double Tax on Sugary Drinks, Proposes New Levy on Ultra-Processed Foods

A proposal is under consideration for the upcoming 2025-26 budget to double the federal excise duty (FED) on sugary drinks from 20% to 40% and introduce a 20% tax on ultra-processed food products in Pakistan. The Ministry of Health has submitted formal recommendations to the Ministry of Finance and FBR, aiming to reduce the consumption of sugar, salt, and unhealthy fats, thereby addressing the country’s growing health crisis. Despite earlier commitments to gradually increase taxes on sugary drinks, these targets have not been met, while multinational companies continue to lobby against such fiscal measures.

Ministry Proposes Warning Labels, Higher Taxes to Combat Sugar and Junk Food Addiction

During a media briefing organized by the Pakistan National Heart Association (PANAH), alarming statistics were shared highlighting the health emergency caused by non-communicable diseases (NCDs) like diabetes, heart disease, and obesity. Pakistan now ranks first globally for diabetes prevalence, with over 31.4% of adults affected. Annually, more than 230,000 deaths are linked to diabetes-related complications. With health spending at just $79 per capita, experts stress the urgency of fiscal and regulatory measures to protect public health.

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In addition to tax hikes, the Ministry of Health has also proposed making front-of-pack warning labels (FOPWL) mandatory on sugary and ultra-processed products. These labels would provide clear, science-based information to help consumers make informed choices. Health and policy experts urged the media to amplify this national health issue and advocate for life-saving legislation, rallying public support to confront the health risks posed by unhealthy, aggressively marketed food and beverage products.

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