Islamabad: Federal Minister for National Food Security and Research, Rana Tanveer Hussain, advocated for a nuanced approach to the Federal Excise Duty (FED) on beverages and juices in Pakistan, during a consultation organized by the Sustainable Development Policy Institute (SDPI). The meeting, held in Islamabad, brought together government officials, academics, industry leaders, and development partners to discuss the implications of the current tax structure on the nation’s food and beverage sector.

According to Press Information Department, the Minister emphasized that taxation should not only serve as a revenue-generating tool but also as a policy mechanism to influence public health, consumption patterns, and industrial progress. He argued that the existing uniform FED system fails to account for the varying sugar content, nutritional benefits, and economic contributions of different beverage categories, advocating for an evidence-based tax strategy.

Rana Tanveer Hussain highlighted the need to balance public health protection, agricultural sustainability, industry competitiveness, and revenue stability. He pointed out the significant role of the juice industry in supporting agro-based value chains and generating rural employment, stressing the importance of policy consistency to foster investment and growth.

The Minister also addressed the challenges posed by unregulated markets, warning that excessive taxation on documented industries might push consumers toward inferior alternatives, raising concerns over food safety and revenue losses. He suggested that Pakistan consider adopting differentiated taxation based on sugar content, aligning with global trends, to promote healthier products and innovation.

Furthermore, the Minister underscored the potential of fruit processing to enhance export competitiveness and reduce post-harvest losses, advocating for policies that support agro-processing to tap into this opportunity. He reiterated the Government’s commitment to advancing public health, strengthening agriculture and industry, and ensuring fiscal sustainability through well-designed revenue strategies.

Rana Tanveer Hussain commended SDPI for facilitating the consultation and stressed the importance of inclusive stakeholder participation in formulating effective policies. He expressed optimism that the discussions would yield practical recommendations for reforming the FED regime in alignment with the country’s economic and health objectives.