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Tea and Coffee to Become More Expensive Soon

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5 min read
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Legal Editorial Desk
Tea and Coffee to Become More Expensive Soon
In the latest budget, the government has announced an increase in customs duties on various types of tea and coffee, making these daily essentials a little less pocket-friendly. Instant coffee in bulk will now face a 5% customs duty, while instant coffee in retail packs will be taxed at 10%. Tea drinkers aren’t spared either: all major categories, including green tea (not fermented) in packs up to 3 kg, other green teas, black tea (fermented and partly fermented) in small packs, tea dust, and black tea in larger packs, will now be subject to a 10% custom duty. The move is part of the government’s effort to boost revenue, but it’s sure to leave a bitter taste for consumers already grappling with rising prices. Note that these rates will only apply to imported tea and coffee brands, while local alternatives remain safe.
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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