New tax proposal takes aim at Thailand's salty food obsession


BANGKOK: Already a regional trailblazer in taxing sugary drinks, Thailand is now eyeing high-sodium foods - a move that could make it the first country in Asia to impose nationwide levies on both sugar and salt.

Officials are preparing a formal proposal for the new government to introduce a phased sodium tax on manufacturers of packaged food, according to Rachada Wanichakorn, deputy director-general of the Excise Department.

The proposal follows Thailand’s 2017 sugar tax aimed at curbing obesity and marks a new push to combat salt-related diseases such as hypertension and kidney disorders.

"We want producers to reformulate their products and gradually reduce sodium content,” Rachada said.

The sodium tax is more complex than the sugar one, she said, because "sodium doesn’t have straightforward substitutes in the same way sugar does.”

The proposed tax wouldn’t apply to freshly cooked food, ready-to-eat meals or fast food, and would be based on total sodium content, not just salt. This means it will also cover other forms of sodium, such as preservatives and baking soda.

As such, it could spur reformulations across snack and processed food makers seeking to avoid higher excise tiers.

Although the move is designed to improve public health rather than boost state coffers, a healthier population would help relieve strain on Thailand’s medical system.

"The objective of this tax isn’t to increase government revenue,” Rachada said. "Rather, it’s intended to create positive social impact and complement non-tax health measures.”

Salt is deeply embedded in Thai cuisine, which emphasises a balance of salty, sweet, sour and spicy flavours. It’s widely used in food preservation, and fish sauce, a high-sodium condiment, is a staple ingredient in dishes such as papaya salad, tom yum and pad thai.

But the habit comes at a cost.

Thais aged 15 and above consume an average of 3,650mg of sodium per day, nearly double the World Health Organization’s recommended limit of less than 2,000mg, according to a 2024-2025 National Health Survey.

The high intake has been linked to rising cases of hypertension and kidney and cardiovascular disease, costing the South-East Asian nation an estimated 1.6 trillion baht (US$51.5 billion) a year in healthcare expenses.

The Excise Department has previously identified instant noodles, frozen meals and savoury snacks as major contributors to sodium intake.

Products classified as having a high sodium content made up almost 20% of the total market value of ready-to-eat and semi-finished foods in Thailand in 2022.

A December study by Mahidol University estimates a sodium tax on instant noodles and snacks could reduce daily intake by about 53 to 83mg.

The prospect of taxing both sugar and salt shows the government is serious about tackling largely preventable diseases, Surasak Kantachuvesiri, an associate professor at Mahidol University who is also a nephrologist, said in a phone interview.

"Public health campaigns can only do so much to change people’s tastes. We need legal measures and taxes to reshape the landscape, to make extreme saltiness no longer the norm,” Surasak said.

Thailand "could also set an example for other countries. Sweetness and saltiness can be addictive. Emotions often outweigh reason. We need an environment that makes healthier choices easier.”

According to Rachada, the salt tax would adopt a tiered structure similar to the sugar levy, with rates rising based on total sodium content per serving.

The first phase would impose a "very low” rate on only the highest sodium content foods for at least six years to give manufacturers time to adjust.

Even so, resistance from parts of the food and beverage industry is deep seated. There’s an argument the measure would place an outsized burden on lower-income households. Some consumers also question how much impact it would actually have.

"A higher tax is unlikely to change consumption patterns in a meaningful way,” Thienking Changrien, a 40-year-old office worker said while out getting lunch in Bangkok earlier this week.

"Eating habits are deeply rooted in taste, lifestyle and convenience. A tax alone won’t move the needle.” - Bloomberg

 

 

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Thailand , sodium , tax , salty food

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