Sugary drinks will face higher taxes from 10 satang to one baht per liter under the new excise law which will become effective on Sept 16.
The enforcement of higher taxes on sugar-sweetened beverages was revealed by Deputy Finance Minister Wisudhi Srisuphan at a seminar on the new Excise Tax Act this week.
Mr Wisudhi said taxes on sugary beverages will be raised once the new excise law becomes effective on Sept 16.
At the seminar, he explained that the sugary taxation is comparable to that applied to the concentration of alcohol in beverages and carbon monoxide emissions from vehicles.
Meanwhile, the director-general of the Excise Department, Somchai Poolsavasdi, said the new excise tax rate is expected to be proposed to the cabinet next week.
He said details of the taxes will be publicized in the Royal Gazette and sugary drink producers will have two years to adapt themselves to the new tax structure.
But Thai Beverage Industry Association vice chairman Prachuab Tayakeepisut voiced opposition to the sugary taxation.
He said raising taxes on sweetened drinks could not help with health issues, while adding that fresh fruit juice is still exempted from taxes.
The Excise Department has come up with six tax categories beginning with 10 satang/liter (0.1 baht/liter) up to 1 baht/liter, depending on sugar concentration. The six categories are:
Drinks with sugar contents between 0-6 grams per 100 milliliter
Drinks with sugar contents between 6-8 grams per 100 milliliter
Drinks with sugar contnets between 8-10 grams per 100 milliliter
Drinks with sugar contnets between 10-14 grams per 100 milliliter
Drinks with sugar contnets between 14-18 grams per 100 milliliter
Drinks with sugar contnets over 18 grams per 100 milliliter
Drinks with sugar contents between 0-6 grams per 100 milliliter will not be charged any taxes, but 10 satang/liter will be charged for drinks with sugar contents of 6 – 8 grams per 100 milliliter. This goes up to 1 Baht/liter for drinks with 18 grams per 100 milliliter of sugar content.
Higher taxes on sweetened beverages to be effective this month - Thai PBS English News