ISLAMABAD: The government has abolished 20 percent Federal Excise Duty (FED) on mineral waters, aerated waters, hydration drinks or electrolyte beverages with artificial sweetener or sugar content below 5g/100 ml. The government has abolished Super Tax on exporters under the amended bill. Income tax relief of Rs 1200 has been granted on imported mobile phones ranging between USD100 to USD200. The government has amended the Finance Bill 2026 through an amendment in the federal excise schedule of the Federal Excise Act. READ MORE: Govt mulling giving relief to fruit juice industry Previously, all kinds of mineral waters, aerated waters, hydration drinks or electrolyte beverages were subjected to 20 percent FED irrespective of the artificial sweetener or sugar content. According to the amendment, Minister for Finance and Revenue to move that in the Finance Bill, 2026, as reported by the Standing Committee, in clause 6, in sub-clause (14), in paragraph (1), for sub-paragraph (e), the following shall be substituted, namely: — “(e) 3 excluding mineral waters, aerated waters, hydration drinks or electrolyte beverages specifically formulated to support hydration electrolytes replenishment containing artificial sweetener or sugar or both not exceeding 5g / 100 ml”. Copyright Business Recorder, 2026
20pc FED on mineral waters, other drinks abolished
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