Govt to Impose Massive New Tax on Bakery Items

The Ministry of Health has proposed a 20% health tax on bakery and confectionery products in the upcoming federal budget for 2025-26, aiming to curb the growing consumption of unhealthy, processed foods. The suggested tax would apply to a wide range of commonly consumed items such as cakes, pastries, biscuits, and other confectioneries. These products, often high in sugar and calories, are considered key contributors to rising obesity and lifestyle-related diseases. The proposal also includes raising the existing 20% federal excise duty on certain items to 40%, with a long-term plan to increase the health tax to 50% by 2028-29. The Ministry believes this move would not only reduce the intake of harmful foods but also enhance government revenue. If approved, the new tax measures will form part of a broader public health strategy aimed at reducing diabetes, heart disease, and other health complications linked to poor dietary habits. The final decision will be taken during the upcoming federal budget session.