New tax proposal takes aim at Thailand’s salty food obsession

Already a regional trailblazer in taxing sugary drinks, Thailand is now eyeing high-sodi-um foods - a move that could make it the first country in Asia to impose nationwide levies on both sugar and salt.

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Under the proposal, a phased sodium tax will be imposed on makers of packaged food. Thailand has previously identified instant noodles, frozen meals and savoury snacks as major contributors to sodium intake.

(PHOTO: AFP)

Officials are preparing a formal proposal for the new government to introduce a phased sodium tax on manufacturers of packaged food, according to Ms Rachada Wanichakorn, deputy director-general of the Excise Department.

The proposal follows Thailand’s 2017 sugar tax aimed at curbing obesity and marks a new push to combat salt-related diseases such as hypertension and kidney disorders.

“We want producers to reformulate their products and gradually reduce sodium content,” Ms Rachada said.

The sodium tax is more complex than the sugar one, she said, because “sodium doesn’t have straightforward substitutes in the same way sugar does”.

The proposed tax would not apply to freshly cooked food, ready-to-eat meals or fast food, and would be based on total sodium content, not just salt.

This means it will also cover other forms of sodium, such as preservatives and baking soda.

As such, it could spur reformulations across snack and processed food makers seeking to avoid higher excise tiers.