The government is evaluating the possibility of imposing a federal excise duty (FED) of Rs. 3-4 per kilogram on sugar, sources revealed. The proposal, along with suggested amendments to the sales tax mechanism on sugar, has been forwarded to the Prime Minister for review.

If approved, the FED is expected to directly affect consumers by increasing the cost of sugar. Additionally, the proposals include changes to the fixed sales tax on sugar, which could further impact pricing.

However, Minister of State for Finance Ali Pervez clarified that no immediate decision has been made regarding the imposition of the tax. He stated that the final decision lies with the Prime Minister’s Office, and the proposed measures are still under consideration and subject to potential revisions.