In a bid to curb the consumption of unhealthy food items, the Ministry of Health has proposed a significant health tax on bakery and confectionery products in the federal budget for 2025-26.
As per reports, the Ministry has recommended the imposition of a 20% health tax on hundreds of ready-made and highly processed food and beverages commonly categorized under bakery and confectionery items.
The proposed tax would target a wide range of products, including cakes, biscuits, pastries, and other similar items.
Furthermore, in an effort to bolster government revenue and reduce the consumption of harmful foods, the proposal also suggests increasing the federal excise duty on some items from the existing 20% to 40%.
This change, if approved, will apply to certain products where the excise tax is currently levied at the 20% rate.
In a long-term strategy to improve public health, the Ministry of Health has recommended that the health tax rate be gradually increased to 50% by the year 2028-29.
The goal of this gradual increase is to further discourage the consumption of unhealthy, high-calorie foods that contribute to rising rates of obesity, diabetes, and other health issues across the country.
