Government Plans to Increase Burden on Common Man in Budget 2025-26; Food and Beverage Items Likely to Become More Expensive

Islamabad:In an effort to boost tax revenue in the upcoming fiscal year 2025-26, the government is considering raising duties on various food and beverage items, which could lead to a significant increase in prices.
According to sources, soft drinks, sweetened beverages, juices, carbonated soda water, and non-sugar sweetened or flavored drinks are likely to become more expensive. The excise duty on these products is proposed to be increased from 20% to 40%.
Items such as carbonated water prepared from juice or pulp, syrups, squashes, and other similar drinks are included in the proposal. Industrial dairy products may also face a 20% tax under the new budget.
Processed meat products including sausages, dried, salted, or smoked meats are also expected to see a price hike. Similarly, a 50% increase in tax is anticipated on bakery items such as chewing gum, candies, chocolates, caramels, pastries, biscuits, corn flakes, and various cereals.
Furthermore, flavored or sweet yogurts, frozen desserts, and all other food items made from animal or vegetable fat may also face increased taxation. The government is reportedly planning a gradual 50% tax increase on these products over the next three years.
Defense Budget:
The defense budget for the upcoming fiscal year is expected to see an increase of Rs. 159 billion, bringing the total estimated defense expenditure to Rs. 2,281 billion. This marks a 7.49% rise compared to the current fiscal year.
For the ongoing fiscal year 2024-25, the government allocated Rs. 2,122 billion for defense, which was already a 14.16% increase from the previous year (2023-24), when defense spending stood at Rs. 1,858.8 billion. This represents a year-on-year increase of Rs. 263.2 billion.