Consumers looking to healthier options with sugar tax

PETALING JAYA: The sugar tax to be introduced next April will force drinks and sugar manufacturers to find creative ways to provide better options for consumers.

Holista Colltech Ltd chief executive officer Datuk Dr M. Rajen said the tax will encourage manufacturers to create products that benefit the customers.

“Sugar is an addictive, powerful substance that carries no nutrients. With this tax, hopefully, Malaysians will slowly reduce and stop their sugar intake,” he said.

He said the same tax introduced in Mexico has also reduced the consumption of soft drinks among the Mexicans.

Other countries that imposed similar taxes are Portugal, Thailand, Brunei, Saudi Arabia, United Arab Emirates, United Kingdom and eight cities in the United States.

Rajen said sugar manufacturers can find other ways to produce healthier options such as selling Low Glycemic (GI) sugar or sugar-infused vitamins and nutrients.

He said the tax would bring revenue to the government and at the same time create awareness on the danger of taking too much sugar.

Finance Minister Lim Guan Eng announced at Budget 2019 that the tax would be implemented on April 1 next year.

The excise duty at 40 sen per litre would be introduced to two types of sugary drinks that are manufactured in ready-to-drink packaging.

The tax is also applied to fruit and vegetable beverages containing sugar more than 12g per 100ml and drinks containing sugar or sweetener exceeding 5g per 100ml.

The Federation of Malaysian Manufacturers Food Manufacturing Group said a holistic approach to combat obesity and non-communicable diseases is a far more effective solution than taxation.