The National Board of Revenue (NBR) has reduced the value-added tax (VAT) on biscuits, reversing its earlier decision to impose 15 per cent VAT on the popular snack, according to a government notification issued yesterday.  

The revenue authority said it would now levy 7.5 per cent VAT instead of the 15 per cent imposed in early January, alongside nearly 100 other items. 

The hike had sparked criticism from various quarters, with concerns that it could fuel inflation, which has remained above 9 per cent since March 2023.  

On January 22, the NBR revised VAT and supplementary duty (SD) on nine goods and services, including mobile phone usage, internet services, and medicines.  

Agro and food processors had been urging the government to reverse the VAT increase on food products, including biscuits.  

Before the hike, consumers paid 5 per cent VAT on biscuits.