Genuine Gaze

August 24, 2025 6:34 pm

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Anouncement

Frozen Food, Cold Drinks, Noodles, Ice Cream and Biscuits to Become Expensive in Budget

Budget Excise Duty Impact

The upcoming 2025-26 federal budget may bring a Budget Excise Duty on many popular food items and services in Pakistan. This could make daily essentials more expensive for consumers across the country.

What Items May Be Taxed

The government plans to add excise duty on:

  • Frozen foods

  • Cold drinks

  • Chips

  • Noodles

  • Ice cream

  • Biscuits

These are everyday items. Many families buy them regularly. A 5% excise duty may also apply to frozen meat, sauces, and ready-to-eat meals.

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Why the Government Is Doing This

Officials say these changes aim to boost tax revenue. The government needs more funds to cover rising expenses and debt. By taxing processed and luxury food items, they hope to raise money without affecting basic goods like flour or rice.

Still, some experts believe this will hit middle- and low-income families. Many people rely on affordable snacks and frozen foods due to time or income limits.

Impact on Consumers

Prices for these food products may rise soon. That means many people might cut down on these items or look for cheaper alternatives. While this helps the economy on one side, it may affect consumer choices and spending habits.

For example, school snacks or frozen dinner options could become less affordable for working families.

What Businesses Should Expect

Food manufacturers and sellers may also face lower demand. If prices rise too much, customers might stop buying. This could lead to lower profits and slower business growth.

Restaurants and cafes that rely on frozen or ready-made foods may need to adjust their menus. Some may even raise prices to cover the new tax.

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More Changes Possible

The final list of taxed items may change before the budget is announced. However, early reports suggest that processed and packaged foods will be targeted.

To stay updated, visit The Express Tribune and Dawn News for the latest news.

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