Sugary drinks tax from April won’t leave sour taste for consumers: Excise Dept
The third-phase tax hike on sugary drinks next month will not affect most beverage manufacturers as they have had enough time to adjust their formulas, the Excise Department said on Monday.
After April 1, beverages containing 6-8 grams of sugar per 100ml will be taxed 0.3 baht per litre, said department spokesman Natthakorn Uthanesut.
The tax will rise to 1 baht per litre for drinks containing 8-10 grams of sugar, 3 baht per litre for those with 10-14 grams, and 5 baht per litre for those with over 14 grams.
Thailand began taxing drinks with more than 6 grams of sugar per 100ml in 2017. The aim was to raise the tax every two years to reduce health impacts from sugar consumption while allowing time for drinks makers to adjust.
The third phase was originally set from October 1, 2021 but the government agreed to postpone the hike to ease the cost of living during the pandemic and allow manufacturers time to adjust.
The third phase will last from April 1 this year until March 31, 2025.
The Excise Department said the third phase should have minimal impact on drinks prices as manufacturers had already adjusted their sugar content.
“Also, we found over 1,800 new beverages that can be classified as healthy drinks, or containing less than 6 grams of sugar per 100ml, which is a good sign that consumers now have more options,” Natthakorn said.
Before the tax there were only around 200 healthy drinks available, he added.
Meanwhile, the department’s draft tax on salty foods is now 90% complete and will be announced based on economic situations.
“After the tax is announced, manufacturers will have at least a year to adjust their business before comes into effect,” he said.
