Sugar tax increase takes effect October 1st

Sugar tax increase takes effect October 1st

 

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BANGKOK, 25th July 2019 (NNT) - A sugar tax increase is going to take effect from October 1st, this the second round of taxes that the Thai government is levying on sugary drinks.

 

From October the first, sugary beverages, namely 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 1st, 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.

 

The beverage with the lowest sugar content is is 200ml of fruit juice, which contains 6.25 teaspoons of sugar. 475ml or one cup of fresh coffee - 10.5 teaspoons of sugar, 450ml or one glass of soda - 10.75 teaspoons, milk tea with tapioca - 11.25 teaspoons, one bottle of green tea - 14.5 teaspoons and the highest is yoghurt with 400ml containg 19 teaspoons of sugar.

 

Source: http://thainews.prd.go.th/en/news/detail/TCATG190725140806445

 

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