Drinks body urges sugar tax review

The Thai Beverage Industry Association is calling on the government to review the National Reform Steering Assembly’s (NRSA) proposal to impose a new sugar tax.

Veera Akaraputhiporn, president of the association, yesterday asked for justice and fairness for the association’s members who would be affected by the tax.

He also demanded the government review the NRSA’s proposal which has been forwarded to the cabinet for approval.

The call came after the NRSA proposed a tax increase on drinks with a high sugar content including soft drinks, coffee, green tea, energy drinks, fermented milk, soy milk and juices.

The tax hike will increase the retail price of these drinks by 20-25%, depending on the amount of sugar contained in the beverages.

The proposal was backed by 153 votes against two, with six abstentions, early this month.

The proposed new taxes are aimed at cutting people’s consumption of sweet drinks, which can put them at risk of obesity and diabetes, and improving public health.

Mr Veera said the association did not oppose the government’s effort to tackle the problems of obesity and chronic diseases including diabetes among Thais.

The association is willing to work with state agencies to address public health problems in a reasonable way, he said.

Mr Veera also asked the government to treat business operators in the beverage industry fairly by allowing them to get involved in the procedures for imposing sugar tax hikes.

He said operators which would be directly affected by the tax had not been informed properly about the levy on sweet drinks until the NRSA submitted a proposal to the cabinet for consideration.

Obesity is a complicated issue, Mr Veera said, adding the condition can be caused by an unhealthy diet and a sedentary lifestyle.

He said the tax would discredit the government’s reform plans and shake the confidence of investors in the country’s beverage business.

Producers are aware of the impact on people’s health of drinking too much sugar, Mr Veera said, adding they have been trying to find ways to improve their products to reduce the risk of obesity and diabetes.