Islamabad, 10 June 2025: The Excise Duties in Federal Budget 2025–26 are set to reshape the pricing landscape of everyday consumer goods, with the government planning to impose fresh taxes on a range of food products and digital services.
Items such as frozen foods, chips, noodles, biscuits, ice cream, and cold drinks may soon carry additional costs, as proposals include excise duties on these goods. Specifically, a 5% duty is under review for frozen meat, sauces, and ready-to-eat meals, targeting convenience-based consumption.
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In parallel, the Excise Duties in Federal Budget 2025–26 are expected to introduce a 18% sales tax on e-commerce transactions, bringing online marketplaces within the formal tax structure.
However, in a bid to support industrial activity, the auto sector is likely to benefit from reduced regulatory duties, with recommendations suggesting no new levies on vehicles, and a 10% annual reduction in tariffs on older cars.
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Additionally, proposals aim to phase out non-tariff barriers and bring the average automotive tariff down to under 6% by 2030, signalling a shift toward liberalised vehicle imports and competitive pricing. As Excise Duties in Federal Budget 2025–26 loom, the government appears to be balancing consumer taxation with industrial reform.
