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Express Tribune
19-05-2025
- Business
- Express Tribune
Drinks, junk food taxes under review
In one of his speech Trump hints for huge taxes on Chinese imports. PHOTO: PEXELS A proposal is being considered to increase taxes on sugary drinks and impose federal excise duty (FED) on ultra-processed products in the upcoming budget for 2025-26. At present, the tax rate is 20%, which is being considered to be enhanced to 40% in the budget. The rate was raised from 13% to 20% two years ago with the commitment to increasing it 10% every year. But the commitment was not met. Moreover, there is no tax on ultra-processed food and the health ministry wants to impose a 20% FED to discourage their use in order to save the lives of millions of people. However, the multinational companies operating in Pakistan have been building pressure on governments during different tenures to ensure their sales continue to increase. Briefing the media, Pakistan National Heart Association (PANAH) Secretary General and Director Operations Sanaullah Ghumman said that the health ministry was working on increasing taxes on sugary drinks and imposing taxes on ultra-processed food to save people from sugar-related and heart diseases. He disclosed that the Ministry of Health Services has formally submitted proposals to the Ministry of Finance and the Federal Board of Revenue (FBR) to increase FED on ultra-processed products – particularly those high in sugar, salt and unhealthy fats – as part of the upcoming Finance Bill 2025. He said that different countries had imposed 50% taxes on sugary drinks and the government of Pakistan should increase the tax rate to discourage their use, adding that the state could raise $810 million in revenue by imposing a 50% tax. Responding to a question, he said that the issue was also being taken up with the Special Investment Facilitation Council (SIFC) to address tax matters pertaining to sugary drinks and ultra-processed food. He added that 2,200 people die daily due to non-communicable diseases that could be avoided by imposing higher taxes. Pakistan is grappling with a national health emergency as non-communicable diseases (NCDs) such as diabetes, cardiovascular conditions, obesity and chronic liver and kidney diseases become increasingly prevalent. The country now ranks first globally in diabetes prevalence, with 31.4% of adults aged 20-79 living with the disease. This is more than a public health issue; it is a national emergency. He said that over 230,000 deaths annually were linked to diabetes-related complications and more than nine million individuals remain undiagnosed. With health spending standing at only $79 per capita, Pakistan is severely under-resourced to address this escalating crisis. A major contributor to the rise in NCDs is the consumption of ultra-processed products. These items are aggressively marketed, highly palatable and easily accessible; yet they offer little to no nutritional value. Their overconsumption is directly linked to the surge in chronic health conditions. These alarming statistics were shared during a media session organised by PANAH in Murree. Health and policy experts addressed the media, urging them to raise their voice in support of this critical national issue. In parallel, the ministry has proposed the mandatory display of front-of-pack warning labels (FOPWL) on these products. These science-based, clear labels aim to empower consumers with accurate information at the time of purchase. He called on the media to play a vital role in shaping public opinion and influencing policy. Its support is essential for raising awareness, educating the public and forcing decision-makers to enact life-saving regulations. Media outlets were urged to amplify the importance of these policy measures and contribute to a national movement for a healthier Pakistan.
Business Recorder
17-05-2025
- Health
- Business Recorder
Ultra-processed products: Parliamentarians urged to impose taxes
ISLAMABAD: Pakistan National Heart Association (PANAH) urged parliamentarians for imposing taxes on ultra-processed products to curb rising non-communicable diseases (NCDs), said a press release. More than 41 per cent of Pakistani adults are classified as overweight or obese, while over 33 million individuals are living with diabetes. Alarmingly, an additional 10 million people are pre-diabetic. If urgent and decisive policy actions are not taken, projections indicate that the number of diabetes patients in Pakistan could soar to 62 million by 2045. A key contributor to this escalating health crisis is the consumption of unhealthy diets, particularly ultra-processed food and beverage products, which are often laden with excessive amounts of sugar, salt, and trans fats. These dietary patterns are among the most significant modifiable risk factors driving the prevalence of NCDs in the country. In response to the alarming surge in non-communicable diseases (NCDs) across Pakistan, the Pakistan National Heart Association (PANAH) convened a high-level pre-budget sensitization roundtable aimed at galvanizing support from parliamentarians for the imposition of excise taxes on ultra-processed products (UPPs) in the upcoming Finance Bill 2025–26. The event was attended by MNA Saad Balouch, MNA Shafqat Awan, MNA Brig Aslam Ghumman, MNA Ghazala Chitrali, MNA Dr Nelson Azeem, Ex MNA DrNisar Cheema, MNA Saad Baloch, MNA Moazam Ali Khan, Health and nutritionist expert Munawar Hussain and General Secretary PANAH Sana Ullah Ghumman. PANAH emphasised that increasing excise taxes on ultra-processed products is an evidence-based, globally endorsed strategy proven to reduce consumption of harmful foods and mitigate the burden of related chronic illnesses. PANAH called on legislators to take bold action in the Finance Bill 2025–26 by extending excise taxes to include a wider range of UPPs, especially all categories of sweetened beverages and processed snacks. This policy intervention is not only essential for safeguarding public health but also presents a dual benefit: generating additional revenue for the government while reducing the healthcare costs associated with NCDs. These revenues should be earmarked for strengthening public health programs. PANAH shred with the participants that Ministry of National Health Services, Regulations and Coordination has submitted a proposal to increase taxes on ultra-processed products in Finance Bill 2025-26. PANAH seek the support of parliamentarians for public health. Parliamentarians in attendance expressed grave concern over the growing NCD crisis and agreed on the urgent need for preventive strategies, including taxation of unhealthy food and beverage products. They acknowledged PANAH's tireless efforts to protect public health and pledged their support for future policy reforms aimed at reducing dietary risks. Parliamentarians with a renewed commitment by parliamentarians to advocate for pro-health fiscal measures in the Finance Bill 2025–26. Copyright Business Recorder, 2025
