FRIDAY, April 19, 2024
nationthailand

Thai Sugar Millers sees little impact from sugary drinks tax

Thai Sugar Millers sees little impact from sugary drinks tax

Thai Sugar Millers Corp (TSMC) expects the sugary drinks tax, which will take effect on September 16, to have only a limited impact on overall level demand in the beverage sector.

It offers a more sustainable solution, the company said, under the government's heightened efforts to educate the public about the recommended daily sugar intake and the importance of physical exercise.
TSMC president of public relations and recreation Siriwut Siembhakdi said that after the law comes into force, drinks with sugar content above the statutory limit will be subject to an additional tax on top of the current 20 per cent ad valorem excise tax. There will be six thresholds: those with sugar content of 0-6 gram per 100 ml (0 per cent), 6-8 gram per 100 ml (Bt0.10/L), 8-10 gram per 100 ml (Bt 0.30/L), 10-14 gram per 100 ml (Bt0.50/L), 14-18 gram per 100 ml (Bt1/L) and 18 gram or above per/ 100 ml (Bt1/L). Producers will be given a two-year grace period before the actual levy starts on October 1, 2019.
TSMC said the levy might create an incorrect understanding that consumption of sugary drinks is harmful and a cause of diseases, which could lead to inadequate consumption of sugar as a source of energy.
"We confirm that sugar is an essential source of body energy. It needs a balanced intake with regular exercises,” he said. 
“We suggest that, starting today and until the start of the levy in 2019, the government intensify its campaign to educate the public about the recommended sugar intake, so that the consumers are correctly informed. Without that, we believe the tax measure will prove futile, and sugar intake will not be reduced but, instead, be increased further.”
 

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