Under the 2023 mini-budget, the government has planned to levy a 20 percent Federal Excise Duty (FED) on sugary beverages like soft drinks, beverages, energy drinks, and juices.
Revenue estimation after imposing 20% FED on sugary beverages
According to senior Ministry of Finance officials who spoke with a blog website, the proposal to increase the Federal Excise Duty (FED) on sugary beverages will bring in Rs. 60 billion over the course of the remaining fiscal year.
Similar estimates place the projected effect of an additional increase in the FED on cigarettes at between Rs. 25 and Rs. 30 billion.
By raising the ordinary rate of one percent sales tax from 17 to 18 percent by the proclamation of the Tax Laws Amendments Ordinance, 2023, the Federal Board of Revenue (FBR) expects to raise Rs. 650 billion between February and June (2022-23).
The planned withholding tax on non-filers’ banking activities is expected to generate close to Rs. 45 billion in revenue. The increased customs charge or three percent flood levy might bring in an additional Rs. 60 billion.
After the latest Supreme Court of Pakistan judgement, the FBR would also be able to recoup between Rs. 75 and Rs. 150 billion in super tax from high-income earners and businesses, according to sources.
To read our blog on “On international trips, Govt. to impose 17% FED,” click here.
