In the newly announced federal budget, the government has increased customs duties on a variety of imported tea and coffee products, impacting the affordability of these everyday beverages.

Bulk instant coffee will now be subject to a 5% customs duty, while retail packs of instant coffee will carry a 10% tax. Tea has not been spared either — all major categories, including green tea (not fermented) in packs up to 3 kg, other types of green tea, black tea (fermented and partly fermented) in smaller packs, tea dust, and black tea in larger packs, will now face a 10% customs duty.

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This move is part of the government’s strategy to enhance revenue collection. However, it comes at a time when consumers are already dealing with inflation and rising living costs. It’s important to note that the new duties apply only to imported products, meaning locally produced tea and coffee will remain unaffected.