ISLAMABAD: The federal government has increased customs duties on imported tea and coffee in the newly announced budget, sparking concern among regular consumers of these popular beverages.
This decision means that your morning cup of coffee or evening tea may soon cost noticeably more.
Bulk instant coffee imports will now attract a 5% customs duty.
Meanwhile, instant coffee in smaller, retail-ready packaging will face a steeper 10% duty.
Tea imports haven’t been spared either.
Multiple categories of tea, such as green tea (unfermented) in packs up to 3 kg, black tea (fermented and partly fermented), tea dust, and green tea in other forms, will all now carry a 10% customs duty.
Government’s Revenue Drive
This move is part of a broader strategy by the government to expand its tax base and increase revenue.
By focusing on non-essential imported goods, officials hope to generate funds without directly burdening domestic producers.
However, it may have an indirect impact on households that rely on imported beverages as a daily staple.
Impact on Consumers
While the hike targets only imported products, the overall effect could still be felt across the market.
Imported brands often set benchmarks for quality and taste, and their price hikes may drive up the cost of alternatives.
Local tea and coffee producers are expected to benefit from reduced competition, but consumers may not be quick to shift preferences.
As inflation continues to affect purchasing power, this additional expense could further tighten household budgets.
