Govt, US delegation discuss imposition of 10% FED on beverage industry

ISLAMABAD: A US Embassy delegation led by Commercial Counselor Aaron Fishman and representatives of the multinational beverage companies visited the Federal Board of Revenue (FBR) to discuss the imposition of a 10% Federal Excise Duty (FED) on the beverage industry in Friday. 

The delegation met the Special Assistant to Prime Minister (SAPM) on Revenue Tariq Mahmood Pasha and the Chairman FBR Asim Ahmad Chairman.

The discussion was conducted in light of the government’s recommendation to increase the FED on beverages industry by 10%, as revealed by the Finance (Supplementary) Bill of 2023. However, the senate’s session on finance held on Thursday discussed the matter in which representatives of Murree Brewery and Shezan enterprises suggested that the increase should by 5% instead of 10%. 

The same matter was discussed today with the US delegation, which assured the representatives of the companies that their genuine concerns will be addressed on priority, according to press release issued by the FBR.

The Chairman FBR extended welcome to the visiting delegation and highlighted the areas of cooperation between the US and Pakistan in terms of trade and business facilitation. Similarly, SAPM also appreciated the US engagement with Pakistan in economic revenue realms and vowed to further strengthen the ongoing cooperation.

Regarding the whole situation, Chairman FBR said that sugary drinks are injurious to health keeping in view the recommnedations of World Health Organisation (WHO) recommendations, the government has increased FED on carbonated water from 13 to 20%. With this the no tax fruit juices have  also been  increased by 10%, which is being contested by relevant stakeholders. 


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Shahzad Paracha
Shahzad Paracha
The writer is a member of Pakistan Today's Islamabad bureau. He can be reached at [email protected]



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