Salt tax will not be introduced this year: Excise Dept


A planned salinity tax on high-sodium foods will not be introduced this year, the Excise Department has confirmed. The department explained that the new tax would be shelved to allow time for the economy to recover.

Thailand had expected to collect up to Bt88 billion from the salinity tax on food this year. The new tax was proposed as a way of promoting a healthier lifestyle. Thais consume 1.8 teaspoons of salt per day on average – almost twice the daily intake recommended by the World Health Organisation. High salt intake increases blood pressure, which can lead to heart disease.

This year’s tax plans were revised after the Cabinet cut excise tax on diesel by 3 baht per litre this week to combat rising living costs.

The move relieved pressure on the Oil Fund, which is depleted after subsidising energy prices driven up by world market conditions and is unable to borrow more money.

However, cutting the excise tax by 1 baht per litre costs the government 2 billion baht per month.

The Excise Department's main income is from tax on petrol, vehicles, beer and liquor. Revenue from tax on beer and liquor is still below the target but expected to rise once Covid-19 restrictions are lifted