ISLAMABAD: Civil society organisations, 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 18pc 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.
Says healthy products such as unsweetened milk, lassi and flour should not be taxed
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.
Retired Major General Masud ur Rehman Kiani, heart specialist and President of the Pakistan National Heart Association, said that heart and other NCDs were 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. 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 added. 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”.
Sanaullah Ghumman, General Secretary of Panah, said that certain actors within the food and beverage industry were 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.
Dr. Saba Amjad, CEO Heart file, representatives of PYCA, CPDI, Pakistan Kidney Patient Welfare Association, Diabetic Association of Pakistan, Pakistan Family Physicians Association, and youth advocates, and other civil society organisations reiterated their commitment to supporting evidence-based public health policies.
Published in Dawn, June 18th, 2026