The Ministry of Health has proposed a 20% health tax on bakery and confectionery products in the upcoming federal budget for 2025-26, aiming to reduce the public’s intake of processed and sugary foods. The tax, if implemented, will apply to items such as cakes, biscuits, and pastries, widely consumed across the country.
Alongside the new health tax, the Ministry has also suggested doubling the current federal excise duty on certain items from 20% to 40%, in a move intended to both discourage unhealthy eating habits and increase government revenue.
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The initiative is part of a broader public health strategy to combat the growing prevalence of obesity, diabetes, and related illnesses. Officials plan to gradually raise the health tax to 50% by 2028-29, ensuring a long-term push toward healthier dietary choices.
Health experts have long advocated for such fiscal measures, arguing they are crucial in addressing non-communicable diseases that strain both individuals and the healthcare system. The proposal is now under review as budget preparations for the next fiscal year move forward.
