Thai government to raise excise tax on soft drinks

BANGKOK, February 18 (TNA) - The Thai government, through the Ministry of Finance, will gradually raise the excise tax imposed on soft drinks sold in the country, starting from October 1, 2019. Patchara Anantasilp, Director-General of the Excise Department under the Thai Ministry of Finance, announced the policy in Bangkok on Monday, stating that his department will first raise the excise tax imposed on soft drinks with sugar at progressive rates from the maximum of one baht per liter currently to the maximum of three baht per liter during October 1, 2019-September 30, 2021 and to the maximum of 5 baht per liter as of October 1, 2021. "Based on Thailand's existing excise law, which has taken effect during September 16, 2017-September 30, 2019, soft drinks with sugar of no more than 6 grams per 100 milliliters are exempt from the excise tax, but those with 6-8 grams of sugar per 100 milliliters are each imposed with the excise tax of 0.10 baht per liter, with over 8-10 grams of sugar per 100 milliliters are each imposed with the excise tax of 0.30 baht per liter, with over 10-14 grams per 100 milliliters are each imposed with the excise tax of 0.50 baht per liter and with over 14 grams per 100 milliliters are each imposed with the excise tax of one baht per liter. The maximum excise tax imposed on soft drinks with sugar will be raised to 3 baht per liter during October 1, 2019-September 30, 2021 and to 5 baht per liter as of October 1, 2021", Patchara told journalists. According to the senior official, Thailand's existing excise law also indicates that any soft drink mixed with at least 20 per cent of farm crops, not just 10 per cent of farm crops as stated in the previous law, is exempt from the excise tax, aimed at assisting local growers of agricultural crops. The senior official acknowledged that producers of some soft drinks sold in Thailand have already reduced the proportion of sugar in their products to reduce their costs from the excise tax, which also indirectly helps people to consume less sugar for the sake of their good health. (TNA)