BANGKOK: Faced with rising obesity rates, as well as health care costs that are ballooning nearly as fast as people’s waistlines, the Thai government has introduced an excise tax aimed at nudging beverage makers into making less sugary drinks.
Pricier soda and sweet tea is causing grumbles, and it is not just soda fans who are complaining. According to a report by the U.S. department of agriculture, the excise tax affects around $9 million worth of U.S. exports, raising their tax burden by 20-30% for some beverages. The report cites industry forecasts from U.S. companies such as Coca Cola and PepsiCo.
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The government began raising taxes on soft drinks with high sugar content on sept. 16. The levy is to rise in stages over the next six years. taxes on sugar sweetened soft drinks were changed from a 20% excise tax on the wholesale price to a 14% excise tax on the recommended retail price, plus a sugar tax based on content.
