Salt tax needs refinement

Salt tax needs refinement

The government is inching towards the introduction of new taxes on salty, processed food.

This week, the Excise Department told the media about a plan to tax food that contains high levels of sodium, which has been linked to non-communicable diseases such as blood pressure, kidney and heart problems.

The state's bill for the treatment of non-communicable diseases is on the rise. According to the Public Health Ministry, more than 39,000 people were in the last stages of kidney failure as of September 2017.

The WHO recommends consumption of no more than 2,000 milligrammes of sodium per day. That equals five grammes, or one teaspoon, of salt per day -- a safe limit that most Thais regularly exceed. Excessive consumption of salt kills 2.5 million people worldwide each year.

Excise chief Patchara Anuntasilpa told the media the agency has been working with the Public Health Ministry on a study of the proposed tax as part of efforts to promote the consumption of healthy food. The department floated the idea of a tax on salty food last year, but it was shot down by the Finance Ministry.

Mr Patchara said the first batch of salty products subject to tax would include frozen and canned foods and instant noodles.

The tax rate will vary according to the amount of salt in the foods -- the higher the sodium content, the higher tax, he said, adding that the details will be finalised and submitted to Finance Minister Uttama Savanayana by the end of the year.

The department, however, does not plan to tax children's snacks because they are not everyday staples. Condiments like fish sauce and fermented fish, which are popular among Isan consumers, will also be waived.

Sodium consumption is an issue in Thailand and using tax measures to boost people's health is an option in principle.

According to Chaladsue (smart consumers) magazine, each brand of instant noodles contains different levels of sodium, the highest being 1,640mg per 60-gramme weight and the lowest recorded at 1,000mg.

Previously, the Prayut Chan-o-cha government put a tax on sugary drinks. If implemented, such a levy on foods containing high levels of sodium would be unprecedented in Thailand.

But the agency needs to tread carefully over the measures, especially for products that are typically consumed by low-income groups, like instant noodles, during an economic crunch. It should encourage manufacturers to adapt and the proposed levy should incentivise them to offer lower-salt formulas as an alternative to consumers. According to Mr Patchara, the department will offer a tax-reprieve period of one to two years for local manufacturers to reduce the amount of salt in their products.

At the same time, it would be better if the agency reconsiders its plan to waive the levy on snacks for children. It's well known that these unnecessary snacks can make young consumers more prone to choosing saltier foods when they grow up. Therefore, such snacks should be among the first products to be levied if the state wants to imbue the nation with healthier eating habits.

Additionally, the state should not limit itself to only using taxation to promote health. On the contrary, it should proactively invest in other measures, such as public awareness campaigns, to make people aware of the dangers of excessive sodium consumption. There also need to be stringent guidelines governing the information on product labels, so consumers can make informed choices about what they put in their shopping baskets.

Editorial

Bangkok Post editorial column

These editorials represent Bangkok Post thoughts about current issues and situations.

Email : anchaleek@bangkokpost.co.th

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