The Excise Department has laid out a roadmap for the imposition of a salt tax (sodium tax), which would start with snack foods, which are known to possess little to no nutritional value.
According to Kulaya Tantitemit, director-general of the Excise Department, the department is currently in the process of discussing the tax with relevant private sector stakeholders to gather their opinions on its implementation.
However, if the salt tax is eventually enforced, the department would provide a transition period for the private sector, similar to the arrangement concerning the sugar tax, which is already being collected.
Before enforcing the sugar tax, the department spent five years consulting with the private sector and studying the most appropriate tax rates before implementing it in 2017.
Additionally, the sugar tax was enforced in three phases, gradually increasing the tax rate to allow businesses to adjust.
Ms Kulaya said that in principle the tax collection will be based on the amount of sodium used in each product.
The first phase would focus on snacks, which are non-essential food items compared to other forms of food. Seasonings and instant noodles are not yet included in the tax plan.
According to Ms Kulaya, other products in the department's tax restructuring plan include batteries, which would help reduce environmental damage.
The principles of the restructuring are: 1. primary (single-use) batteries will have a higher tax rate, while secondary (rechargeable) batteries will have a lower tax rate; 2. Lighter but more efficient batteries will also have a lower tax rate. This new structure is currently under review to be submitted to the cabinet, she said.
As for the government's policy to lift the restriction on alcohol sales, Ms Kulaya said that it is expected to benefit the tourism sector and increase consumption of products subject to excise tax.
For fiscal 2025, she said the department has been given a revenue collection target of 609 billion baht, which is considered a high target, but the department would strive to meet this goal.
