Excise Department may enforce sodium excise tax on snacks next year
The Excise Department may begin collecting sodium excise tax on foods next year, starting with snacks, which are considered non-essential items, the department chief said on Wednesday.
Kulaya Tantitemit, Director-General of the Excise Department, stated that the introduction of a sodium-based excise tax on foods would follow a model similar to the sugar-based excise tax imposed on beverages since 2017. The sugar tax is calculated based on the sugar content in beverages.
She explained that the department is currently studying the appropriate tax rates for sodium content and expects tangible results next year, with plans to implement the tax on snacks first.
Kulaya emphasized that the department would conduct thorough research to minimize the impact on food manufacturers and provide sufficient time for them to adjust to the new sodium tax system.
“The tax system should encourage food manufacturers to reduce sodium content in their products,” she said.
Kulaya also noted the success of the sugar tax, stating, “After seven years of the sugar-based tax, we’ve observed a reduction in sugar consumption among Thais. This demonstrates the role of tax mechanisms in improving public health.”
She highlighted that Thais consume approximately twice the recommended amount of sodium, and the department aims to use taxation to influence consumer behavior and promote healthier choices.
Kulaya added that the sugar-based tax and the planned sodium-based tax align with the department’s Environmental, Social, and Governance (ESG) principles.
Additionally, she mentioned that the department is restructuring excise rates for vehicles to encourage manufacturers to transition from traditional internal combustion engines to future mobility solutions, including electric vehicles (EVs), hybrid EVs, and hydrogen-powered vehicles.
