Web Desk: Government is likely to maintain a heavy tax burden on food and daily essential items in the upcoming federal budget, with existing duties and sales taxes continuing to drive up costs for basic household goods, according to official documents.
The development suggests limited relief for consumers already grappling with inflation, as the government continues to rely on import duties and sales taxes on key commodities.
According to the documents, authorities are currently collecting a 20% customs duty and an additional 4% duty on white crystalline sugar. In addition, a range of everyday commodities including vegetable ghee, cooking oil, tea leaves, sugar, powdered milk and processed food items remain subject to an 18% sales tax.
Electricity and gas services are also taxed at the same rate, further adding to household expenses. Meanwhile, a 1% sales tax is being applied to various medicines, keeping healthcare costs partially under taxation.
Officials said the structure reflects the government’s broader revenue strategy, even as inflationary pressures persist across consumer markets.
Moreover, chicken imports continue to face a 20% customs duty along with an additional 4% levy, keeping poultry prices under pressure. Eggs are subject to customs duties ranging between 3% and 16%, in addition to regulatory duties.
Similarly, potatoes carry a 20% regulatory duty, while tomatoes and onions are each taxed at 5% customs duty, according to the document.
Wheat and rice imports also remain taxed at 10% each, while wheat flour is subject to a 5% customs duty, further contributing to rising food costs across the country.
In addition, the document shows that raw soybean oil is taxed at Rs 10,500 per metric ton in customs duty, along with an additional 2% customs duty.
Vegetable oil imports are also subject to Rs 10,800 per metric ton customs duty and a 10% regulatory duty. Likewise, raw cooking oil carries an Rs 8,000 per metric ton customs duty plus an additional 2% levy.
Consequently, the existing tax structure indicates that the government is likely to continue relying on indirect taxation of essential goods as a key revenue source in the upcoming budget.
While officials have previously signaled plans for tariff rationalisation in select sectors, the current framework suggests that any meaningful relief on basic food items may remain limited in the near term.
Read more: Budget 2026 expected to bring price cuts on several items
