ISLAMABAD: In a significant move aimed at curbing the rising tide of non-communicable diseases (NCDs), the Ministry of Health Services has proposed a substantial increase in taxes on sugary drinks and the imposition of a federal excise duty (FED) on ultra-processed products in the upcoming budget for 2025-26.
The proposal suggests raising the tax rate on sugary drinks from the current 20% to a hefty 40%. This comes two years after the rate was increased from 13% to 20% with an unmet commitment to a 10% annual increase.
Additionally, for the first time, the health ministry is pushing for a 20% FED on ultra-processed foods, currently untaxed, to discourage their consumption and safeguard public health.
Multinational companies operating in Pakistan have historically exerted significant pressure on successive governments to protect their sales, a trend that is expected to continue as these new tax proposals gain traction.
Briefing the media, Sanaullah Ghumman, Secretary General and Director Operations of the Pakistan National Heart Association (PANAH), revealed that the health ministry is actively working on these tax increases to protect citizens from sugar-related and heart diseases.
He confirmed that formal proposals have been submitted to the Ministry of Finance and the Federal Board of Revenue (FBR) to increase FED on ultra-processed products—especially those high in sugar, salt, and unhealthy fats—as part of the upcoming Finance Bill 2025.
Ghumman highlighted that several countries have imposed taxes as high as 50% on sugary drinks. He urged the government of Pakistan to follow suit, asserting that a 50% tax could generate an estimated $810 million in revenue for the state.
He also mentioned that the issue is being discussed with the Special Investment Facilitation Council (SIFC) to address tax matters concerning sugary drinks and ultra-processed foods.
He underscored the alarming statistic that 2,200 people die daily from NCDs, deaths that he believes could be avoided through higher taxation on these harmful products.
Pakistan is currently facing a severe national health emergency, with NCDs such as diabetes, cardiovascular conditions, obesity, and chronic liver and kidney diseases becoming increasingly prevalent. The country now holds the grim distinction of ranking first globally in diabetes prevalence, with 31.4% of adults aged 20-79 living with the disease. This is not merely a public health concern but a national emergency.
Ghumman further stated that over 230,000 annual deaths are linked to diabetes-related complications, with more than nine million individuals remaining undiagnosed. With a per capita health spending of only $79, Pakistan is severely under-resourced to tackle this escalating crisis.
A primary driver behind the surge in NCDs is the widespread consumption of ultra-processed products. These items, often aggressively marketed, highly palatable, and easily accessible, offer minimal nutritional value. Their overconsumption is directly correlated with the rise in chronic health conditions.
These sobering statistics were presented during a media session organized by PANAH in Murree, where health and policy experts appealed to the media to champion this critical national issue.
In addition to the tax proposals, the ministry has also advocated for the mandatory display of front-of-pack warning labels (FOPWL) on these products.
These science-based, clear labels aim to provide consumers with accurate information at the point of purchase.
Ghumman implored the media to play a crucial role in shaping public opinion and influencing policy, emphasizing that their support is vital for raising awareness, educating the public, and compelling decision-makers to enact life-saving regulations. Media outlets were urged to underscore the importance of these policy measures and contribute to a national movement for a healthier Pakistan.
