The federal government is weighing the introduction of a 5 percent Federal Excise Duty (FED) on more than 50 categories of ultra-processed food products in a bid to ramp up indirect tax revenue. The proposed duty would target a wide range of popular items, including frozen foods, chips, carbonated drinks, instant noodles, biscuits, ice cream, frozen meat, sauces, prepared meals, sausages, and other processed food products.

Officials say the move is designed to significantly boost revenue in the upcoming fiscal year and represents the largest indirect tax initiative under consideration for the period. The plan is part of the government’s broader strategy to widen the excise duty net and strengthen public finances.

The proposal is currently under review and is expected to be a key topic in the forthcoming budget discussions. If approved, the new excise duty could have a notable impact on both government revenue and the prices of everyday processed foods.