Taxes on salt and fat considered

The Ministry of Finance is studying the feasibility of imposing taxes on products containing salt and fat as a preventive health measure.
The taxes would target specific products based on salt content and fat types, aiming to reduce sodium and fat consumption among Thais by 30%, Deputy Finance Minister Paopoom Rojanasakul said on Tuesday.
A local group of public health advocates calling itself Less Salt reported recently that the average Thai consumes 3,636 milligrammes of sodium each day, much higher than the 2,000mg recommended by the World Health Organization.
High sodium intake is associated with a higher risk of high blood pressure, kidney problems, heart disease and stroke.
Speaking after a meeting with Excise Department officials, Mr Paopoom said the department should strive to raise revenue while driving economic growth and restructuring the economy, while also considering environmental concerns, public health and good governance.
He identified five areas where excise taxes have an impact: automobiles, oil, public health, batteries and tobacco.
For automobiles, he said tax policy should stimulate investment and support the auto industry as a whole, particularly in the production of vehicles and components. This includes a supply chain connecting small to large industries, as well as employment.
The appropriate levels of taxation should create incentives for increased domestic production of plug-in hybrid electric vehicles, battery electric vehicles and fuel cell electric vehicles, while gradually maintaining the production base for internal combustion and hybrid electric vehicles.
A clear timeline must be set, during which the Excise Department is allowed to accept short-term revenue losses to support long-term industrial restructuring, he said.
For oil, the department is being advised to establish a carbon pricing mechanism within the excise tax on oil and six types of oil products. This aims to induce behavioural changes or production processes that help reduce carbon dioxide emissions by both the public and businesses, without affecting energy prices.
On the public health front, Mr Paopoom urged the department to use tax mechanisms to support preventive healthcare and reduce the consumption of harmful food. This aims to promote better health among the public and alleviate the burden on the public health budget.
The collection of a mixed-sweet tax will continue into Phase 4 as scheduled, and the department is studying the sodium tax on certain products not currently under control, as well as a fat tax. Businesses that stand to be affected would be given time to adjust before the law comes into effect.
For batteries, the department has been directed to consider changing the fixed tax rate of 8% levied on batteries to a tiered rate, taking into account life cycle factors and specific energy costs by weight, as well as battery types, to promote the clean battery and EV industries.
Mr Paopoom also asked the department to study the appropriateness of improving the structure of the single-rate tobacco tax to reduce price distortions. This should consider the competitive ability of businesses and support domestic tobacco growers.
Additionally, a monitoring system for cigarettes will be established using QR codes to prevent illegal cigarettes, allowing the public to participate in verifying tax information and the source of cigarettes to ensure they meet standards and are certified by the Excise Department.