Health Experts Urge 40% FED on Sugary Drinks in Budget

ISLAMABAD: Public health experts and civil society organisations have called on the government to increase the Federal Excise Duty (FED) on all sweetened beverages to 40 percent in Budget 2026-27, arguing that stronger taxation measures are needed to curb Pakistan’s growing diabetes crisis.

The demand was made by the TRANSFORM Pakistan Campaign, a coalition of health professionals and advocacy groups, which warned that excessive consumption of sugary drinks is contributing to a sharp rise in diabetes and other non-communicable diseases (NCDs) across the country.

According to the campaign, Pakistan is among the countries with the highest diabetes burden globally, with an estimated 35 million adults currently living with the disease. The coalition cautioned that without immediate policy intervention, the number of diabetes patients could double to nearly 70 million by 2050.

In a statement, the coalition said the economic impact of diabetes is also increasing rapidly, with annual management costs exceeding $2.6 billion, placing a significant burden on households and the healthcare system.

Health and nutrition policy expert Munawar Hussain said international and local evidence shows that higher taxes on sweetened beverages can effectively reduce consumption and lower the risk of obesity, diabetes, cardiovascular diseases and other diet-related health conditions.

Dr. Saba Amjad, Chief Executive Officer of Heartfile, emphasized that all sweetened drinks, including packaged fruit juices, contribute to health risks regardless of whether the sugar is naturally occurring or added. She urged policymakers to adopt science-based taxation policies aligned with international public health standards.

Afshar Iqbal, Director Communications and Advocacy at Pakistan Youth Change Advocates (PYCA), challenged industry claims that packaged fruit juices are healthier alternatives because they contain no added sugar. He noted that the World Health Organization (WHO) classifies fruit juices as a source of free sugars and supports fiscal measures, including taxation, to discourage excessive consumption.

Meanwhile, Mukhtar Ahmed Ali, Executive Director of the Centre for Peace and Development Initiatives (CPDI), said Budget 2026-27 presents an opportunity for the government to address the rising health and economic costs associated with diet-related diseases.

He suggested that additional revenue generated through higher taxes on sugary drinks and fruit juices should be allocated to public health initiatives, disease prevention programmes and awareness campaigns aimed at improving health outcomes nationwide.

The coalition urged policymakers to adopt evidence-based fiscal measures in the upcoming federal budget, arguing that higher taxation on sweetened beverages could help reduce sugar consumption, improve public health and ease the long-term burden of diabetes on Pakistan’s healthcare system.