Thorough and inclusive public hearings involving all stakeholders should be mandatory for the proposed salt excise tax, says the producer of Mama instant noodles.
The Excise Department plans to establish a new tiered salt tax this year based on the sodium content of various products, starting with snacks.
No public hearings have occurred yet, said Chonlakorn Apichattham, marketing director for Thailand and category lead for Indochina at Pepsi-Cola (Thai) Trading Co Ltd, the producer and distributor of Lay's potato chips.
Pun Paniangvait, general manager of Thai President Foods Plc, the manufacturer of Mama instant noodles, said he was strongly advocating for public hearings that engage all stakeholders, reflecting the views of everyone affected by the legislation.
"The process should be conducted thoughtfully at a reasonable pace, getting feedback from everyone including consumers," he said.
Mr Pun said food businesses are already having discussions about the salt tax amongst themselves. They expect it to primarily target ready-to-eat foods, while fresh food items and seasonings may be excluded.
He said he expects the salt tax to initially target non-essential food items such as snacks, while instant noodles may not be affected in the early stages.
Thai President Foods also produces crackers under the Bissin and Homey brands, which contribute minimally to the company's total sales.
Mr Pun said any legislation on this issue will likely be ministerial regulations.
The Excise Department said the intent of the salt tax is to curb sodium consumption as Thais consume roughly twice the recommended sodium levels.
However, Mr Pun doubted whether this regulation would lead to improved public health outcomes.
He questioned if the tax will extend to all food products containing salt or if the government will implement measures to reduce salt content in fresh market offerings.
"Will food such as yentafo [Thai pink noodle soup], which might have higher salt content, also be subject to this tax?" said Mr Pun.
He also expressed concern over whether consumers might bear more of the tax burden than manufacturers.
At this point, there are uncertainties over how much excise tax will be collected.
Mr Pun said details on the tax collection system, product declaration processes, inspection procedures, and the evaluation of impacts remain unclear.
It was also uncertain if manufacturers could transfer the tax burden to consumers. Mr Pun said that if businesses can manage this, manufacturers may choose to do so.