- The Fed can drop from 20% to 50% by 2029.
- Tax aims to reduce UPP consumption nationally.
- The ministry suggests higher tasks to limit MNT.
Islamabad: The Ministry of National Health Services proposed the taxation of a health tax on hundreds of processed and ultra-tangled food and drinks, including bakery and confectionery articles, at a rate of 20% in the next federal budget of 2025-2012, The news reported.
For certain products already subject to a right of federal excise by 20% (Fed), the report recommends increasing the rate to 40% in the next financial year.
The proposal also describes a gradual increase in taxation, which suggests that the rate is gradually increased to 50% by 2028-2029, in the context of efforts to discourage the consumption of unhealthy foods and drinks.
“Complete data collection data through these measures may be maintained and health expenses can be raated according to the estimated increase in income taxation proposed”, a report entitled “Ultra -processed distinction in food and fiscal political drinks for public health” prepared and shared with the preparation of the Ministry of Health and the next time that the Ministry of Finance and the Federal Board of Revenue) been declared for the preparation of the following budget for 2025-26.
“Each measure of new or additional health tax should aim to offer double public health benefits to reducing the consumption of food and unhealthy drinks and, at the same time, generate more income to provide a budgetary space for more health expenses in order to promote a healthy Pakistani initiative of the government,” he said.
On airy water containing added sugar, sweetening agents or aromas, including those made entirely from juices or vegetable pulp, food grains or fruit, and containing only authorized additives, as specified by the rules of western Pakistan Pure, 1965, the current federal excise service (Fed) is 20%. The report proposes to increase this rate to 40% in the next budget of 2025-20126, with a new increase to 50% by 2028-2029.
Similarly, on sweet fruit juices, syrups, squash and flavored waters (excluding mineral and airy water), the current Fed of 20% should be raised to 40%, followed by a gradual increase to 50% by 2028-29.
The report also recommends introducing a 20% (Fed) right of federal excise (Fed) on a wide range of additional ultra-transformed food products in the next budget. These include milk -based products containing added sugar or sweeteners; Transformed items such as sausages and foods based on dried, salty or smoke meat; And confectionery products such as gaming mastant, candy, chocolates, caramels and glitter.
In addition, the list covers the bakery and mixtures of pastries, cookie pasta, sweet cookies, platelets and cereal products obtained by blowing or roasting – including sugary corn flakes and other additive -based cereals. It also includes jams, frosts, marmelades, fruit purees and pasta (prepared with or without added sugar), as well as preserved fruits, vegetables and nuts with added sugar, sweeteners, sodium or trans fat.
The other articles proposed for inclusion are ice cream, flavored or sweet yogurts, icy desserts and preparations for sauces and condiments such as soy sauce, ketchup, mayonnaise and other commercial sauces. The proposal extends to protein concentrates, hydrolyzes, yeast autolysats, puddings, dessert mixtures, cooking improvements and mixtures of artificial sweeteners.
Essentially, any food product or industrial transformed drink containing fat fat or vegetable fats, sweeteners, sodium or other artificial additives would be the proposed tax framework. For all these elements, it is recommended to gradually switch to the Fed to 50% by 2028-2029.
Pakistan’s tax fiscal policy can pay attention to the growing international trend, especially in Colombia, Saudi Arabia and the World Bank’s recommendations for Pakistan.
Taxation can be used as a tool to promote public health as is done in the rest of the world.
Increase rights are a preferred option for any special health tax measure on UPPs. These are industrially formulated foods and ultra-treated with additives such as any type of sugar, oils, fats, salt, antioxidants, stabilizers and preservatives.
At the same time, it is recommended that unsweetened packed milk, natural bottled water, packaged fresh fruits and vegetables can be declared zero evaluated for the ends of the taxes of excise and sale in order to provide healthy and alternative choices to people for the general improvement of eating habits.
Pakistan has no particular tax on UPPs beyond drinks. A special and important health tax can lead to a reduction in the consumption of unhealthy industrial products.
Tax measure has the potential to reduce the prevalence of obesity, type 2 diabetes, cerebral vascular accidents, dental cavities, cardiovascular diseases and high blood pressure. Above all, most estimates suggest that a health tax would save significant health care expenses.
Young people between 18 and 40 are the largest consumers of SSB and other UPPs in Pakistan and will be the greatest beneficiaries of the health tax as a direct force of this tax.
In the long term, the reduction in UPP consumption and non -transmitted diseases (MNT) will lead to individuals less in medical costs and to gain more increased years of productive life. This will have a significant impact on the national economy, he added.