The cabinet resolved to delay a third-phase increase in the sugary drink tax for six months to avoid worsening financial burdens on people.
Finance Minister Arkhom Termpittayapaisith said the tax hike would be postponed from Oct 1 this year to March 31 next year to curb the cost of living.
Otherwise, the private sector would pass the bigger tax burden on to consumers. The deferment would also give more time for the beverage industry to adapt to the new levy regulation governing their production of sweeteners, the minister said.
The Excise Department started collecting the sugary drink tax in 2017 to prompt the private sector to reduce sugar content to protect consumers’ health. The tax was planned to increase gradually.
Under the present economic situation, if the government raised the tax on its old schedule, there could be direct impacts on people and the recovery of the beverage industry because manufacturers might have to increase their product prices accordingly, Mr Arkhom said. (TNA)
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