Government to Launch New Sodium, Fat, and Sugar Taxes to Promote Healthier Living
On November 5th, 2024, Thailand’s Deputy Finance Minister, Paophum Rojanasakul, announced plans for the Excise Department to study and implement new tax measures targeting sodium, fats, and sugars in certain products.
These taxes aim to promote healthier lifestyles and reduce healthcare costs by discouraging the consumption of unhealthy food. The current sugar tax, which is already in place, will continue under a mixed-tax model, moving into its fourth phase as scheduled.
Paophum also discussed a potential sodium tax on salty snacks and non-essential items, emphasizing that essential goods for low-income individuals would be exempt to avoid undue financial burden.
For fat taxes, which are new, the Excise Department will explore the classification of “good” and “bad” fats to guide consumers towards healthier choices.
The goal is to reduce sodium consumption in Thailand by 30% by 2025, with a gradual transition period for businesses before the regulations are enforced.
In addition, Paophum addressed tobacco tax reforms, suggesting a unified tax rate to prevent price manipulation while supporting local tobacco farmers. A QR code tracking system for cigarettes will be introduced to combat smuggling, allowing the public to verify the legitimacy and tax compliance of products.
Paophum also introduced a carbon pricing mechanism for petroleum products, making Thailand the second ASEAN nation to implement such a policy. The carbon price is set at 200 baht per ton, aiming to encourage both businesses and individuals to reduce carbon emissions without significantly affecting retail energy prices.
Further reforms include transitioning battery and vehicle taxes to a tiered system based on pollution levels, promoting clean battery production and the electric vehicle industry, according to Paophum.
Thai Government to Launch New Sodium, Fat, and Sugar Taxes to Promote Healthier Living - The Pattaya News
