Islamabad: Civil society organizations, medical associations, and patient groups in a post budget press conference welcomed the inclusion of several ultra-processed food products (UPPs) in the Third Schedule of the Sales Tax framework, making them liable to 18% sales tax. However, they expressed concern that healthy products such as unsweetened milk, lassi, and flour should not be taxed. The UPPs categories proposed for tax in finance bill include sugar confectionery, infant formula products, sauces and condiments, packaged pasta and noodle products, fruit and vegetable preparations such as jams and purees, and vegetables and oils sold in retail packaging.
The coalition described the decision—subject to approval of the Finance Bill—as encouraging, but recommended that the federal government make such decisions based on scientific evidence. They noted that the NOVA food classification system and WHO-recommended thresholds for salt, sugar, trans fats, saturated fats, and products containing any amount of non-sugar sweeteners provide a strong technical basis for taxation. Such an approach could help generate revenue for government while also delivering public health benefits.
The coalition also urged the government to increase the Federal Excise Duty on all sweetened beverages, including sodas, packed juices, flavored milk, iced tea, coffee, squashes, and syrups to 40%, citing their significant contribution to Pakistan’s growing public health challenges. They noted that packaged juices, which are often stripped of natural fiber, can have metabolic effects similar to sugar-sweetened beverages. The resulting high glycemic load contributes to rising rates of type 2 diabetes and childhood obesity, placing an increasing financial burden on the public healthcare system.
Major General (R) Masud ur Rehman Kiani, renowned heart specialist and President of the Pakistan National Heart Association, said that heart and other NCDs are lifestyle diseases that can be controlled. Diet has a pivotal role in the life style. Ultra-processed products are typically high in added sugars, unhealthy fats, and salt, and often contain artificial additives while offering little to no nutritional value. He noted that excessive consumption of these products has consistently been linked to obesity, type 2 diabetes, cardiovascular diseases, hypertension, certain cancers, and other non-communicable diseases (NCDs). He warned that Pakistan is already facing a growing NCD crisis, with millions of people living with diabetes, heart disease, and obesity-related illnesses. According to him, the increasing availability, affordability, and aggressive marketing of ultra-processed foods is contributed significantly to unhealthy dietary patterns across the country. He further stated that taxes on ultra-processed foods in the Finance Bill 2026-27 must send a strong message that public health must be prioritized over commercial interests. He urged policymakers to continue strengthening fiscal and regulatory measures aimed at reducing the consumption of ultra-processed food and beverage products that contribute to the country’s growing disease burden.
Mr. Munawar Hussain, Health and Nutrition Policy Expert, said: “Commercial beverage production uses only a fractional amount of the country’s total fruit output. Genuine agricultural support does not come from promoting the consumption of unhealthy packaged juices which contribute to chronic diseases through high liquid sugar intake. Instead, it comes from reinvesting tax revenues into farmer-focused interventions such as solar-powered cold-chain storage facilities and improved direct market access for fresh fruit, which can strengthen the livelihoods of smallholder farmers”.
Mr. Sana Ullah Ghumman, General Secretary of PANAH, said that certain actors within the food and beverage industry are attempting to mislead policymakers. He urged decision-makers to remain vigilant against efforts aimed at securing tax relief for unhealthy products juice and beverage products. He added that large corporate beverage manufacturers often purchase fruit at very low industrial processing rates, limiting the bargaining power of small farmers and fruit growers. According to him, when taxation measures are introduced, some industry players try create pressure and influence public debate, using concerns around farmer livelihoods to seek tax reliefs on their unhealthy products. Such commercial interest and tactics must be exposed to support evidence based decision making in the best interest of public health.
Dr. Saba Amjad, CEO Heartfile, representatives of PYCA, CPDI, Pakistan Kidney Patient Welfare Association, Diabetic Association of Pakistan, Pakistan Family Physicians Association, and youth advocates, and other civil society organizations reiterated their commitment to supporting evidence-based public health policies. They called upon all stakeholders—including federal and provincial governments, regulatory bodies, and the private sector—to work together to create healthier food environments for the people of Pakistan. The organizations expressed hope that the taxation of ultra-processed products will mark an important milestone in the country’s efforts to prevent non-communicable diseases (NCDs), improve population health, help achieve Sustainable Development Goal 3 (SDG 3)—including the target of reducing premature mortality from NCDs by one-third by 2030—and promote sustainable economic development.
