National ( The cow news digital ) The burden of indirect taxation on essential food commodities remains a major concern as government-imposed duties and taxes continue to be applied on basic household items including potatoes, tomatoes, onions, and eggs, according to official documents.
The records show that a wide range of everyday food products are subject to multiple layers of taxation. Vegetable ghee, cooking oil, tea leaves, and sugar are currently being charged an 18 percent sales tax, significantly increasing their retail prices. Similarly, wheat is subject to a 10 percent duty, while rice also carries a 10 percent customs duty. Flour derived from wheat is additionally taxed at 5 percent customs duty, further impacting staple food affordability.
Sugar faces one of the highest tax burdens, with a 20 percent customs duty along with an additional 4 percent surcharge. These combined charges place considerable pressure on a commodity widely consumed across all income groups.
The documentation further highlights that even protein-based and perishable items are not exempt from taxation. Chicken is subjected to a 20 percent customs duty plus an additional 4 percent levy, while eggs are taxed between 3 percent and 16 percent depending on classification, excluding further regulatory duties.
Vegetables such as potatoes and tomatoes are also part of the taxed basket, with potatoes carrying a 20 percent regulatory duty and tomatoes and onions each facing a 5 percent customs duty. These taxes contribute directly to rising food inflation, especially in urban markets.
The tax structure extends beyond fresh produce. Raw soybean oil is subject to customs duty exceeding 10,000 rupees per metric ton along with an additional 2 percent duty. Vegetable oil carries a fixed customs duty of 10,800 rupees per metric ton and an additional 10 percent regulatory duty, while raw cooking oil is taxed at 8,000 rupees per metric ton plus a 2 percent surcharge.
Sources indicate that the government has not yet finalized whether these taxes and duties will be reduced in the upcoming federal budget. The next fiscal budget for 2026–27 is expected to be presented on June 5, and market participants are closely watching for possible relief measures.
Economists warn that the continued reliance on indirect taxation on essential commodities disproportionately affects lower and middle-income households, as food expenses constitute a significant portion of monthly budgets. Any further increase in duties could intensify inflationary pressures and reduce household purchasing power.
As anticipation builds ahead of the upcoming budget announcement, consumers and traders alike remain uncertain about potential policy changes that could ease the cost of living.
