The government is considering a major overhaul of beverage taxation by linking federal excise duties to sugar content and nutritional value, days before the presentation of the FY2026-27 federal budget on June 10.
Food Minister Rana Tanveer Hussain said Pakistan should move away from the current uniform Federal Excise Duty (FED) regime and adopt a more targeted, evidence-based taxation framework for beverages.
He said the existing tax structure does not adequately differentiate between products with varying sugar levels, nutritional profiles, and economic contributions.
The minister added that the formal juice industry plays an important role in supporting agricultural value chains by sourcing locally grown fruit and generating income for farmers, transporters, processors, and other rural stakeholders.
The minister also warned against imposing excessive tax burdens on documented industries, saying higher taxes could push consumers toward cheaper, unregulated alternatives, creating risks for food safety, consumer protection, and government revenues.
He suggested that Pakistan study international taxation models that impose duties based on sugar content and nutritional composition.
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copying ideas from other countries simply so you can boast about development
A castiest rana minister is very incompetent, zero knowledge, zero progress. So low that heeven failed to stop substandard food at bus stations.