Higher taxes proposal on sugary drinks appreciated

Islamabad : As Pakistan continues negotiations with the International Monetary Fund (IMF), the Ministry of National Health Services, Regulations and Coordination has submitted a proposal to the Federal Board of Revenue (FBR) and the Ministry of Finance to increase the Federal Excise Duty (FED) on all types of sugary drinks including juices, and to impose FED on solid ultra-processed food products containing high amount of sugar, salt and fats, in the upcoming Finance Bill 2025-26.

According to Pakistan National Heart Association (PANAH), the proposal reflects growing national and global consensus that fiscal policies can be a powerful tool to protect public health. Sugary drinks and ultra-processed food products have been linked to a rise in obesity and non-communicable diseases (NCDs) such as heart disease, stroke, type 2 diabetes and kidney disease in Pakistan. These products are often high in nutrients of public health concern such as sugars, sodium, and unhealthy fats, offering little to no nutritional value while contributing to long-term health complications.

While Pakistan is grappling with an enormous burden of diabetes globally ranked top with over 31 per cent adults living with the disease, the economic cost of inaction is staggering in Pakistan and continues to place an unbearable burden on the national economy and public health infrastructure. It is estimated that the annual direct cost of managing diabetes alone in Pakistan stands over $2.6 billion. The average economic loss per patient with type 2 diabetes amounts to approximately $740 each year, which is almost half of the per capita income of an average Pakistani. Moreover, the broader economic losses from premature mortality due to NCDs between 2010 and 2025 are projected to range between $358 billion and $862 billion. These numbers underscore the urgent need for decisive and preventive policy action.

Research has shown that increasing the price of these products through taxation helps reduce consumption, especially among youth and low-income populations who are most at risk. Revenue generated from such taxes can also be redirected towards health and nutrition programs, further strengthening the country’s response to rising healthcare costs.