Uniform beverage tax fails to reflect sugar content, nutritional value

June 03, 2026 (MLN): The uniform Federal Excise Duty on beverages and juices does not adequately reflect differences in sugar content, nutritional value, or economic contribution.

Federal Minister for National Food Security & Research Rana Tanveer Hussain made the remarks as chief guest at a high-level consultation organised by the Sustainable Development Policy Institute (SDPI) in Islamabad, where stakeholders from government, academia, industry, and development partners gathered to deliberate on the rationalisation of FED on beverages and juice products.

The minister said taxation must balance public health, agricultural sustainability, industrial competitiveness, and revenue stability, describing these objectives as mutually reinforcing rather than conflicting when backed by calibrated policymaking, according to a press release issued.

He pointed to the formal juice industry's role in supporting agro-based value chains through procurement of locally produced fruits, generating income for farmers, processors, and rural workers.

Rana Tanveer Hussain cautioned that excessive pressure on documented industries risks pushing consumers toward cheaper, unregulated alternatives raising concerns over food safety, consumer protection, and revenue leakage. He urged policy stability in the sector to encourage investment and value addition.

On the global shift toward sugar-based tiered taxation, the minister said Pakistan should move in a similar direction, using incentives for low-sugar and no-added-sugar products to drive both healthier consumption and industrial modernization.

He also highlighted fruit processing as a means to reduce post-harvest losses, boost export competitiveness, and strengthen rural livelihoods, noting the country's significant untapped potential in agro-processing.

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