Increase Sweet Tax Stage 3

The sweet tax rises again. This is stage 3 of rising sweet tax starting from April 1, 2023 after The Excise Department maintained the tax period for 6 months in accordance with the cabinet resolution that approved tax retention from October 1, 2023 to March 31, 2023. Let’s talk about sweet tax. Is it important to have and is there any rising in the future?

Why must the "Sweet Tax" be levied?

The Excise Department started to levy sweet tax according to the amount of sugar in beverages from the beginning of 2017. The objective of this tax is to encourage industrial operators to adjust a formula to reduce sugar for people’s health. Also, the sweet tax is a multi-rate tax restructuring. The Excise Department hopes that Sweet Tax will raise the price of the beverage which has exceeded the criteria and will result in consumers reducing their consumption of beverages, including making Thai people healthier.

How many ranges of the sweet tax have been levied?

The tax structure is set at a three-stage rate as follow;

1st stage from September 16, 2017 to September 30, 2019
2nd stage from October 1, 2019 to September 30, 2021
3nd stage from October 1, 2021 to September 30, 2023 (However, It was resolved that the second phase of the tax rate should be maintained for the second time, with the end of March 31, 2023, to alleviate the cost of living.) and started on April 1,2023

When does the third sweetener tax start and how?

The 3rd stage of Sweet Tax which started on April 1,2023 have the tax rate as follow;

Tax rate for 0-6 grams of sugar will be 0 baht per liter from 0 baht per liter at the present time
Tax rate for 6-8 grams of sugar will be 0.3 baht per liter from 0.1 baht per liter at the present time
Tax rate for 8-10 grams of sugar will be 1 baht per liter from 0.3 baht per liter at the present time
Tax rate for 10-14 grams of sugar will be 3 baht per liter from 1 baht per liter at the present time
Tax rate for 14-18 grams of sugar will be 5 baht per liter from 3 baht per liter at the present time
Tax rate for 15 grams or more of sugar will be 5 baht per liter from 5 baht per liter at the present time

The Sweet Tax is an advance rate tax which will be increasing every 2 years. If the industrial operators do not adjust themselves by reducing the amount of sugar in drinks, they are likely to pay more for the Sweet tax. For example, Beverages containing 10-14 grams of sweeteners per liter will be taxed from 1 baht to 3 baht per liter. However, most operators have gradually reduced their sugar amount, which will not cause any additional tax burdens.”

Nowadays, The number of beverage manufacturers with health alternative nutrition symbols has increased from over 200. The number of new products increased to 1,800, or 9 times more than before in January 2023. It is believed that beverages that contain sugar less than 6 grams (tax rate is 0 baht per liter) are increasing which is good for people to have no risk of diabetes.