New taxes, changing consumer habits set to shake up food & drink sector
New retail legislation and developments in consumer purchasing habits are set to impact activity in Thailand’s retail sector, particularly the food and drink segment, according to research by UK-based Oxford Business Group.
Notable among these developments is a levy, which came into force in mid-September, targeting soft drinks containing sugar.
A tax of 20-30 per cent levied on the suggested retail price of sugary drinks is intended to encourage Thais to consume less sugar in order to improve their health, as well as prompt producers to cut sugar content in their products.
Also in force since mid-September is a 45-per-cent duty on liquor based on its value, in addition to a tax of 50 per cent based on its level of alcohol.
The levels will be gradually increased over a six-year period.
