SOHAIL SARFRAZ

ISLAMABAD: Taking a major revenue generation measure, the government is likely to impose 5 percent federal excise duty (FED) on over 50 different types of ultra-processed foods in the coming budget (2025-26).

Sources told Business Recorder here on Monday that the government is reviewing this budget proposal to impose some kind of FED on a wide range of ultra-processed foods covering frozen foods, chips, carbonated drinks, instant noodles, ice cream, biscuits, frozen meat, sauces, ready-made meals, sausages and many other kinds of ultra-processed foods.

If the proposal is approved, it would be the biggest revenue generation measure on the indirect taxes side.

The impact of the proposal on indirect taxes collection would be very high during next fiscal year, but the proposal is yet not finalized, sources added.