Bangkok – A sugar tax increase is going to take effect from October 1, this the second round of taxes that the Thai government is levying on sugary drinks.
From October, sugary beverages such as sodas, ready-to-drink green tea, coffee, energy drinks and fruit juice are going to be taxed at a higher rate in line with the Excise Tax Act 2017. The progressive tax rate will be levied per 100ml of the beverage volume.
This will be the second tax increase and a third is scheduled for October 1, 2021.
This time, a beverage containing 10g of sugar per 100ml of product will not be taxed. But drinks in the 10-14g range will be taxed 1 baht per litre, from 14 to 18g – 3 baht per litre, and over 18g of sugar per 100ml – 5 baht per litre.
According to Excise Department, the purpose of such a tax is to encourage less sugar consumption. The Thai Health Promotion Foundation says that sugar consumption should not exceed 6 teaspoons, or 24g per day. Statistics indicate that Thai people consume an average of 20 teaspoons of sugar per day, 3 times the recommended amount.
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