In a move aimed at reducing the consumption of unhealthy food, the Ministry of Health has proposed a substantial health tax on bakery and confectionery products in the federal budget for 2025-26.
According to reports, the proposal suggests imposing a 20% health tax on a variety of ready-made, highly processed food items, including cakes, biscuits, pastries, and other similar products commonly classified under bakery and confectionery categories.
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Additionally, the proposal recommends increasing the federal excise duty on certain items from 20% to 40%, aiming to boost government revenue and discourage the purchase of unhealthy foods.
As part of a long-term strategy to enhance public health, the Ministry plans to gradually raise the health tax rate to 50% by 2028-29.
This incremental increase is designed to further limit the consumption of high-calorie foods linked to rising obesity, diabetes, and other health-related issues nationwide.
