The government is likely to raise taxes on several food and beverage equipment in the next 2025-26 federal budget to increase tax revenue.
Under the proposed changes, excise duty on soft drinks, sweet drinks, juices, carbonated soda water, flavorful or non -sugar sweets can be increased from 20 % to 40 %.
The affected goods include carbonated drinks made of juice or pulp, syrup and squash. A new tax of 20 % has also been proposed on industrial dairy products.
Meat products such as sausages, dry, snacks or smoking meat are also expected to be more expensive. In addition, tax rates on bakery and confectionery items – such as chewing gum, candy, chocolate, caramels, pastry, biscuits, corn flakes and grains are expected to increase by 50 %.
Frozen, delicious yogurt, ice cream, and all food items can also be seen in taxes made of animal or vegetable fat. Sources said that the government plans to increase these taxes in the next three years, which increases the total increase by 50 %.
Meanwhile, a total of Rs 2,281 billion is expected to increase the next fiscal year’s defense budget by Rs 159 billion.
This reflects a 7.49 % increase from the current fiscal year (2024-25), which allocated Rs 2,122 billion. In comparison, the defense budget of 2023-24 was Rs 1,858.8 billion – which has increased by 14.16 % since this year’s allocation.
Over the past year, the defense budget has increased by Rs 263.2 billion, indicating the government’s ongoing commitment to national security amid financial reforms.
