The Thai government 'declared war on sugar' to reduce obesity

Thailand lost $ 404 million annually because of the direct and indirect effects of obesity.

Thailand is currently facing an increase in obesity rates . Along with that, the cost of health care is also expanding with the waist of the people. To address the situation, the Thai government has issued a special consumption tax on freshwater producers, forcing them to reduce sugar content in products.

Increasing prices for chocolate and soft drinks not only make sweets lovers in Thailand complain. According to the report of the US Department of Agriculture, excise taxes are likely to affect 9 million USD of the country's export turnover. The report cites forecasts from many US companies such as Coca-Cola and PepsiCo, suggesting that some drinks may be subject to a 20-30% higher tax rate.

The Thai government began to raise taxes on high sugar beverages on September 16. The tax will continue to be increased in stages over the next 6 years.

The Thai government proposes, and imposes additional taxes on beverages containing more than 6 grams of sugar / 100ml.

Previously, imported sugar drinks were subject to special consumption tax at 20% of the wholesale price. Now, the Thai government has adjusted it to 14% of the suggested retail price, and levied additional taxes on drinks containing more than 6 grams of sugar / 100 ml.

With this change, the tax on fruit juice increases from 0.06 baht to 0.54 baht (equivalent to 42 VND to 276 VND) per bottle. Energy drinks have a tax increase between 0.32 baht and 0.9 baht (equivalent to 223 VND to 626 VND).

Tea and coffee were the hardest hit, since the Thai government was previously exempted from taxes. Now, the tariffs on these items are increased from 1 bath to 2 baths / product (equivalent to 696 VND - 1391 VND).

is a common concern in Southeast Asian countries. Singapore has asked beverage manufacturers, including, to pledge to reduce the maximum amount of sugar in products sold in Singapore to 12% by 2020.

Indonesia also plans to enact legislation next year to reduce sugar, salt and fat content in food. Malaysia abolished a priority subsidy for sugar in 2013.

The Thai Ministry of Finance estimates that road tax will help increase the budget revenue of 2.5 billion baht (approximately 1739 billion NVD) each year.The highest excise tax for items in Thailand is at 30%. The government is trying to encourage beverage manufacturers to adjust their product lines. Accordingly, Thailand will commit to keep tax rates for low sugar drinks in the first two years after it is issued.

On the stock market, new road tax has affected stocks of major beverage manufacturers. As soon as the plan was announced in June, stocks of companies such as Oishi Group, Ichitan Group and Carabao Group fell.

The Golden Temple country is facing an increasing obesity rate.

Thai people like sweets. Tan Passakornnatee, general manager of Ichitan green tea company, said workers in Thailand want to drink sweet teas, they don't like sugar-free tea.

However, obesity is increasing in Thailand as more and more people work in offices and are less active. According to a World Trade Organization survey, 26% of men and 33% of women in Thailand were obese in 2014, an increase of 7-8% compared to 2004.

In March, the Asian Development Bank issued a report that estimates the cost to address the effects of obesity on the Thai economy. The huge number given is 404 million, equivalent to 12 billion baht per year.

Of these expenses, 46%, equivalent to $ 186 million, comes from the cost of direct health care for obese people. The remaining 54%, equivalent to $ 218 million, comes from indirect costs, related to premature mortality ($ 195 million, or 5.86 billion baht) and reduced labor ($ 23 million, good). 694 million baht).

Many neighboring countries with Thailand in Southeast Asia are also considering issuing similar taxes.