Islamabad, Apr 14, 2025: In an effort to reduce the intake of unhealthy, high-calorie foods, the Ministry of National Health Services has put forward a new proposal to impose a substantial health levy on processed bakery and confectionery products in the upcoming federal budget for 2025-26.
According to credible sources, the Ministry has advised implementing a 20% health tax on a broad category of packaged and ready-to-eat sweet items that fall under the umbrella of bakery and confectionery products.
These include cakes, biscuits, pastries, and various similar treats that are typically high in sugar and saturated fats.
The suggestion is part of a broader public health initiative aimed at minimizing the population’s reliance on unhealthy food options.
The authorities believe that increasing the cost of these items through taxation could steer consumers towards more nutritious alternatives.
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In addition to this, the proposal calls for a revision in the existing federal excise duty structure.
The government recommends doubling the duty rate on certain already-taxed processed food products from the current 20% to 40%.
This move will not only boost government revenues but also deter excessive consumption of sugary and fatty foods.
Looking ahead, the Ministry’s roadmap outlines a gradual increase in the health tax rate over the coming years.
By the fiscal year 2028-29, the proposal recommends elevating the levy to 50%, aiming to curb non-communicable diseases such as obesity, type 2 diabetes, and cardiovascular issues through a long-term approach.
The government expects the strategic rollout of this taxation policy to deliver a double benefit: improving public health outcomes and generating additional revenue streams.
Officials are optimistic that the policy will encourage both consumers and manufacturers to make healthier food choices.
This taxation measure could significantly shift food consumption patterns in Pakistan if the government implements it, placing public health at the center of fiscal planning.
