F&N
KUALA LUMPUR: The government's decision to impose excise duty on sweetened beverages beginning April 1, 2019 is too early and should be done in phases, said Fraser and Neave Holdings Bhd
(F and N) Chief Executive Officer, Lim Yew Hoe.
He said this was due to the difficulty in finding alternatives to sugar.
"We can use stevia, but it will affect the taste, as it gives you a bitter aftertaste, whereas natural sugar will cost you a lot of money," he told a media briefing on the group's financial results for financial year 2018 (FY18) ended Sept 30, 2018, here today.
According to the 2019 Budget announcement on Nov 2, a 40 sen tax per litre will be imposed on drinks containing more than five grams of sugar or sugar-based sweetener per 100 ml, as well as fruit and vegetable juices with sugar content of more than 12 grams per 100 ml.
Lim said to-date, 90 per cent of the group's product mix was included in the taxable category.
"We have invested considerable efforts and resources to promote healthier options through the reformulation of existing products, as well as innovating to introduce healthier options. "We do support the government's effort in promoting healthy lifestyles, however, the five months given before tax implementation is not adequate," he added.
Lim noted that over the years, the group had taken significant efforts to reduce the amount of sugar in its total beverage portfolio. "As a result, the sugar index (sugar amount in gram per millilitre of beverage) has decreased by 34 per cent since 2004," he said.
F and N's net profit for FY18 increased to RM385.13 million from RM323.37 million a year ago, while revenue slightly rose to RM4.11 billion from RM4.10 billion, previously, due to higher export sales and effective festive promotions. - Bernama
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