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Sugar tax postponed

Sugar tax will be postponed to July 1st

The decision to implement a sugar tax is being postponed to July 1st this year. Previously, there was a plan to enforce the tax on April 1st. Customs Department director-general Datuk Seri Subromaniam Tholasy said the decision was made after taking into account the feedback from stakeholders.

“The postponement will give manufacturers and the Customs Department ample time to make the necessary preparations.

For the Customs Department, it will allow us to conduct roadshows and issue licences to sugar-based beverage manufacturers,”

Source: Customs Department Director-General Datuk Seri Subromaniam Tholasy, NST

The plan to imposed sugar tax was tabled in parliament by Finance Minister Lim Guan Eng in the 2019 Budget, and it was reported that a 40 sen per litre tax would be imposed on soft drinks with more than five grams of sugar or sugar-based sweetener per 100ml which will include carbonated drinks, or flavoured and other non-alcoholic beverage while 12g of sugar per 100ml for juice or vegetable-based drinks.

The government has touted the idea to impose the sugar tax as part of its efforts to promote a healthy lifestyle.

Source: NST

Datuk Seri Subromaniam Tholasy also said that the  postponement will allow the Customs Department to conduct roadshows and to issue a license to sugary drinks producers. Threshold of sugar content in flavoured milk product will also increased in order to encourage consumption of milk-based products with healthier sugar levels.

He also said that in the implementation of the excise duty, the government has agreed to increase the threshold of sugar content in flavoured milk products to seven grams per 100 millilitres from five grams per 100 millilitres, but the increase does not apply to soy milk products.

Source: The Edge Markets

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