ISLAMABAD - Carbonated beverage industry has highlighted the discriminatory taxation regime and harsh narrative against the industry in Pakistan, despite paying ‘Health Levy’, in the form of high Federal Excise Duty (FED), since years. Carbonated drinks are the only products within the massive food and beverage industry paying the Health Levy whereas no other sugar-based products have FED applied on them.
The representatives of the industry have said that the federal government has already raised the FED on carbonated drinks from 6% to 13% over the last few years. A source from the industry added, “Carbonated beverage industry only uses 6% of the total sugar production in the country, however the rest of the 94% sugar consumers have no excise duty applied on them, which is quite discriminatory.” Carbonated drinks manufacturers have requested the government to review its consideration of not burdening the industry with more taxes and providing a level playing field in the country.
The representatives of the industry have said that the federal government has already raised the FED on carbonated drinks from 6% to 13% over the last few years. A source from the industry added, “Carbonated beverage industry only uses 6% of the total sugar production in the country, however the rest of the 94% sugar consumers have no excise duty applied on them, which is quite discriminatory.” Carbonated drinks manufacturers have requested the government to review its consideration of not burdening the industry with more taxes and providing a level playing field in the country.
