Govt to set sugar tax at 20%

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Govt to set sugar tax at 20%

Post by buksida » Sat Feb 18, 2017 10:16 am

The Excise Department is set to cap the levy on sugary drinks at 20%, with beverages containing more sugar carrying a larger tax burden than less-sweet products, according to the department's chief.

The 20% ceiling is based on the current tax on drinks that have sugar among the listed ingredients, such as carbonated beverages, which are now charged 20% of the final wholesale price or 45 satang per 440 cubic centimetres, said director-general Somchai Poolsavasdi.

To encourage drinks makers to lower the sugar content of their products, high-sugar drinks could be imposed at the maximum rate, while those with less sugar will be taxed at lower rates such as 15%, 10%, 5% or even given a tax exemption, Mr Somchai said.

After the new tax on sugary drinks is enforced, all drinks which are now tax-exempt should be taxed for fairness to all beverage makers, he said.

The Excise Department is looking into imposing the sugary-drink tax on canned green tea and coffee.

Ready-to-drink green tea and coffee have been exempted from excise tax by claiming to use domestic raw materials, while fruit and vegetable drinks must contain at least 10% natural ingredients to escape an excise tax of 20% on the final wholesale price.

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