Final phase of sugar tax gets underway

Beverage manufacturers and producers of sweetened products that fail to reformulate their recipes to reduce sugar content will face higher excise taxes, following the implementation of the final phase of the sugar tax by the Excise Department, says the Finance Ministry.

- WICHIT CHANTANUSORNSIRI

According to a ministry source who requested anonymity, the Excise Department announced an increase in the sugar tax based on sugar content, beginning Phase 4, which is the final phase. This phase took effect on April 1, following the end of Phase 3 on March 31.

As a result, beverage manufacturers or producers of sweetened products are expected to reformulate their recipes to reduce sugar content, or else they face higher excise tax rates.

The source said this tax hike is not a new tax, but part of a scheduled progressive increase every two years, starting from 2017.