Thailand enters 'War on Sugar' with tax on sweetened beverages

[rooster59]

Thailand enters 'War on Sugar' with tax on sweetened beverages

By Chris Prentice

 

NEW YORK (Reuters) - Thailand has slapped tariffs on sugar likely to hit $9 million worth of U.S. beverage exports, the U.S. Agriculture Department said on Friday, as one of the top producers of the sweetener joins a growing list of regions implementing such taxes.

 

The Thai government implemented its first-ever excise tax on sugar in beverages in a bid to reduce consumption, the report published on USDA's website said, citing industry estimates for the potential impacts on U.S. manufacturers like PepsiCo Inc, Coca-Cola Co and Dr Pepper Snapple Group Inc.

 

Governments around the world have been weighing introduction of taxes on sugary beverages in order to stem health epidemics including diabetes and obesity. The World Health Organization, which has backed the levies, said earlier this month that child and teen obesity had soared tenfold in four decades.

 

A handful of regions in the United States voted in 2016 to implement sugary-drinks taxes, but the soda industry scored a victory this month when one of them, Chicago's home county, voted for repeal.

 

Thailand moved ahead with the sugar levy last month among a series of other excise taxes on goods, including some alcoholic beverages and cigarettes forecast to generate 12 billion baht ($360 million) in revenues.

 

Previously, imported beverages were taxed at a 20-percent rate. The new system cuts that to 10 percent but adds a tariff on beverages with over 6 grams of sugar per 100 milliliters, the USDA said in its report.

 

Thailand is the third-largest producer of the sweetener after Brazil and India.

 

To read the full report, go here: http://bit.ly/2zCbFfz

 

 

-- © Copyright Reuters 2017-10-21

[Jingthing]

Sugar tax not high enough.

While they're at it, time to lower the tax on the wonderful HEALTH promoting drink -- WINE. You know, the real stuff, not the faux crap being promoted here full of sugar juice. 

[Pilotman]

This made me laugh.  I have never known a country where the population put sugar in absolutely everything, bar nothing.   They even put sugar into drinks that are already high in the stuff, .like hot chocolate. Why they are mostly thin I have no idea. 

[Jingthing]

Just now, Pilotman said:

This made me laugh.  I have never known a country where the population put sugar in absolutely everything, bar nothing.   They even put sugar into drinks that are already high in the stuff, .like hot chocolate. Why they are mostly thin I have no idea. 

They may be "mostly" thin but there is a strong trend towards increased obesity, especially in youth, and sadly obesity in youth generally carries forward to obesity in adulthood. It's wise to try to address this before Thailand becomes another Mexico. 

[tracker1]

They need all the money they can get those subs arn't cheap !

[petedk]

5 minutes ago, Pilotman said:

This made me laugh.  I have never known a country where the population put sugar in absolutely everything, bar nothing.   They even put sugar into drinks that are already high in the stuff, .like hot chocolate. Why they are mostly thin I have no idea. 

 

I once stood next to a Thai lady in a food court and counted that she put 8 (eight) heaped spoonfuls of sugar onto her Lad Na. Probably more sugar that noodles.

[darksidedog]

I'd like to know if putting tax on these drinks actually has any effect on consumption levels. If mummy is just going to pay an extra 2 baht to keep her kid happy, the only winner is the tax department. Getting kids involved in activity sports is far more beneficial for the bodys weight, not to mention the cardio vascular system.

[lupin]

9 minutes ago, Pilotman said:

This made me laugh.  I have never known a country where the population put sugar in absolutely everything, bar nothing.   They even put sugar into drinks that are already high in the stuff, .like hot chocolate. Why they are mostly thin I have no idea. 

In 7/11 in the "fresh food" section there is a pre-packed, pre-cooked CP steamed/poached chicken breast... with sugar added

[Pilotman]

10 minutes ago, Jingthing said:

They may be "mostly" thin but there is a strong trend towards increased obesity, especially in youth, and sadly obesity in youth generally carries forward to obesity in adulthood. It's wise to try to address this before Thailand becomes another Mexico. 

Not surprising.  My wife gets through bags of the stuff and I just can't seem to educate here.  She is slim and has no problem maintaining her weight, but I do notice that the new generation of babies in our family are over weight and being fed sugary stuff.  

[4evermaat]

10 minutes ago, petedk said:

 

I once stood next to a Thai lady in a food court and counted that she put 8 (eight) heaped spoonfuls of sugar onto her Lad Na. Probably more sugar that noodles.

 

Funny thing is that asking for "nit noi" of the usual is still quite a large heap of sugar.  You have to watch the preparer and tell them exactly how much extra to add. 

 

Thai gov't will make a lot of money here.

[petedk]

1 minute ago, darksidedog said:

I'd like to know if putting tax on these drinks actually has any effect on consumption levels. If mummy is just going to pay an extra 2 baht to keep her kid happy, the only winner is the tax department. Getting kids involved in activity sports is far more beneficial for the bodys weight, not to mention the cardio vascular system.

That is one of the problems worldwide. Kids nowadays get no exercise. 

 

I am amazed to see young people riding motorbikes up to street vendors and stopping in front of the cart, not getting off their bikes and ordering food. I regularly see a girl jump on her motorbike to ride 20 meters. 

 

People just hate walking or doing any form of physical exercise. Many Thais are surprised when they hear how much I walk every day (I am still a little overweight though, but that is my love of food).

 

I doubt very much if putting tax on these drinks will have any effect on consumption. I know some who habitually drink a bottle of coke in the morning as soon as they arrive at work. Also many Thais will find it hard to drop the sweet ice coffees.

 

 

 

[Damrongsak]

One of my in-laws live across the street from a huge sugar plant south of Wang Sapung in Loei.  I wonder if that will affect them.  Though I heard they were considering selling their 40 or so Rai for some insane price in the tens of millions Baht.  Land prices are insane in some places.

[Damrongsak]

13 minutes ago, petedk said:

 

I once stood next to a Thai lady in a food court and counted that she put 8 (eight) heaped spoonfuls of sugar onto her Lad Na. Probably more sugar that noodles.

My brother-in-law put two level tablespoons of dried, toasted & ground Thai hot pepper into his bowl of noodles. I was too busy freaking out to count the sugar.  He's a cook in a Thai restaurant in USA.  Do NOT ask for authentic Thai food.  555

[Speedo1968]

18 minutes ago, 4evermaat said:

 

Funny thing is that asking for "nit noi" of the usual is still quite a large heap of sugar.  You have to watch the preparer and tell them exactly how much extra to add. 

 

Thai gov't will make a lot of money here.

Just tell them "No sugar".

 

[Speedo1968]

If previously imported beverages were taxed at a 20-percent rate and, the new system cuts that to 10 percent but adds a tariff on beverages with over 6 grams of sugar per 100 milliliters, surely one can expect the beverage companies to reduce the sugar content to just below 6 grams per 100 milliliter thus saving themselves 10% tax ?

 

What about Thai made beverages ?

[Thian]

1 hour ago, darksidedog said:

I'd like to know if putting tax on these drinks actually has any effect on consumption levels. If mummy is just going to pay an extra 2 baht to keep her kid happy, the only winner is the tax department. Getting kids involved in activity sports is far more beneficial for the bodys weight, not to mention the cardio vascular system.

My fat thai friend has 2 daughters who are also fat...finally she bought memberships for the clubhouse so they all could go swimming. After 5 minutes she had to go buy icecream for them all, after another 5 min she was going to buy Pepsi for them.

 

Those memberships cost 15.000 a person a year, after 2 times swimming they had enough of it and never went there again.

[Jingthing]

3 hours ago, darksidedog said:

I'd like to know if putting tax on these drinks actually has any effect on consumption levels. If mummy is just going to pay an extra 2 baht to keep her kid happy, the only winner is the tax department. Getting kids involved in activity sports is far more beneficial for the bodys weight, not to mention the cardio vascular system.

Nope. The consensus is in. Food intake (quantity and type with sugar being a serious culprit) is much more important than exercise. Exercise matters too but the myth that kids are getting fat only because of inactivity is totally wrong. 

[robblok]

3 hours ago, darksidedog said:

I'd like to know if putting tax on these drinks actually has any effect on consumption levels. If mummy is just going to pay an extra 2 baht to keep her kid happy, the only winner is the tax department. Getting kids involved in activity sports is far more beneficial for the bodys weight, not to mention the cardio vascular system.

As someone who exercises a lot i have to disagree. Its almost impossible to outrain a bad diet, it takes far more activity then a bit of sports to combat the extra sugar someone drinks.

 

I think this will work given that Thais really don't have that much spending power in general. So they will go for cheaper alternatives. This in turn might make the producers change their formula. I am all for sugar tax and hope it means sugar free alternatives appear. 

[impulse]

3 hours ago, Speedo1968 said:

3 hours ago, 4evermaat said:

Funny thing is that asking for "nit noi" of the usual is still quite a large heap of sugar.  You have to watch the preparer and tell them exactly how much extra to add. 

 

Thai gov't will make a lot of money here.

Just tell them "No sugar".

 

Ho ho ho.  I have had way too many occasions when asking for no sugar, no MSG or (my favorite) no pepper has resulted in the cook doubling up on whatever I mentioned.  Just like at work, you not only have to tell them what you want, have them repeat what you just said, then actually watch to make sure they got it.   Which is difficult when the waitress is really, really cute and the cook is hidden away in a back room.

 

[alant]

Very few alternatives, low sugar versions of drinks with the exception of Coke and Pepsi almost impossible to find.

[AlphMichaels]

A revenue ruse.  Agree with many posting on topic; better elementary education (diet & exercise) and some parental guidance will far exceed the success of taxing.    

 

Then you have the matter of education in general. 

[Xonax]

3 hours ago, robblok said:

As someone who exercises a lot i have to disagree. Its almost impossible to outrain a bad diet, it takes far more activity then a bit of sports to combat the extra sugar someone drinks.

 

I think this will work given that Thais really don't have that much spending power in general. So they will go for cheaper alternatives. This in turn might make the producers change their formula. I am all for sugar tax and hope it means sugar free alternatives appear. 

Unfortunately "Sugar Free" in Thailand means filled with Aspartam, sucralose or other artificial sweeteners.

[bluesnake]

I am really angry, because the ONLY item that is actually healthy at 7/11 is the Oishi green tea (the one with the white cap), which has ZERO sugar. And guess what... it was 25 bahts, already too much, I was close to stop buying it. Now it went up to 30 bahts !!! For a small bottle of tea infused water, in Thailand !! That is a total scam. Now there is absolutely zero healthy item left at 7/11, all junk, apart from plain water, and even that, this UV, distilled, filtered, processed liquid is not really water, it is dead matter, which I am positive isn't healthy in the long-term.

[Jingthing]

WATER! 

[Emster23]

If you think this is just a tax on sugary drinks, you are uninformed (assuming link is correct). To wit:

"1.Artificial mineral water, soda water, and carbonated soft drinks without sugar or other sweeteners and without flavor."

and

"3.Fruit and vegetable juices (hmm would think they might want to promote these)

4.Coffee and tea (they don't naturally have sweeteners)

5.Energy drinks

6.Beverage concentrates to be used with beverage vending machines for distribution at retail areas"

Italics and underline mine.

Seems just another attempt to get more money out of general public under guise of "promoting health"

This is part that they push to exclusion of others

2.Mineral water and carbonated soft drinks with added sugar or other sweeteners or flavors; and

other nonalcoholic beverages

 

[nisakiman]

6 hours ago, darksidedog said:

I'd like to know if putting tax on these drinks actually has any effect on consumption levels. If mummy is just going to pay an extra 2 baht to keep her kid happy, the only winner is the tax department. Getting kids involved in activity sports is far more beneficial for the bodys weight, not to mention the cardio vascular system.

Since the quantities of sugary drinks consumed didn't change after the soda taxes were introduced in Mexico and Berkeley, it is inconceivable that they could have any effect on obesity. The authors of the Berkeley study (who include soda tax fanatic Barry Popkin) admitted that there was no statistically significant change in calorie intake from sugary drinks and that 'caloric intake of untaxed beverages (milk and other diary-based [sic] beverages) increased.'

 

http://velvetgloveironfist.blogspot.gr/2017/10/jamie-olivers-sugar-tax-success.html

[Jingthing]

7 minutes ago, nisakiman said:

Since the quantities of sugary drinks consumed didn't change after the soda taxes were introduced in Mexico and Berkeley, it is inconceivable that they could have any effect on obesity. The authors of the Berkeley study (who include soda tax fanatic Barry Popkin) admitted that there was no statistically significant change in calorie intake from sugary drinks and that 'caloric intake of untaxed beverages (milk and other diary-based [sic] beverages) increased.'

 

http://velvetgloveironfist.blogspot.gr/2017/10/jamie-olivers-sugar-tax-success.html

Sounds like right wing ideologically driven PROPAGANDA.

More objective sources conclude there has been modest success in Mexico. 

 

Mexico's Soda Tax Success

Sales of sugary drinks fell in the developed world's second-most-obese country.

 

https://www.bloomberg.com/view/articles/2016-01-08/mexico-s-soda-tax-success

 

That is why I would like to see a major nation (could be THAILAND) consider a more radical tactic and test that out -- much, much higher even PUNISHING taxes on sugar drinks. 

[Ceruhe]

7 minutes ago, Emster23 said:

"3.Fruit and vegetable juices (hmm would think they might want to promote these)

Considering that most juices are loaded with sugar too, not really? Dunno if there is actually anything "healthy" inside those juice things to begin with, nowadays it might also just be water/sugar/artificial BS. Hell, the apple juice from Malee/ARO/Unif/Tipco tastes likes bubblegum to me. Rarely ever drink juices anymore. Last alternative I got is water, which I can only enjoy close to freezing point, anything "much" warmer than that is like drinking depression straight up.

 

Can only hope they over correct like they did in Philadelphia and turn people from sugar based drinks to alchol based drinks as a result hehe

 

 

[IamNoone88]

I measure my blood sugar level day - I have to. Sugar is the easy culprit for diabetes but in Asia, it is the rich carbohydrates that will also get you. So cutting sugar is one (and its it is in everything!) and carbs the other. I had to cut beer out ..... but oddly the more red wine I drink ... the lower the morning blood sugar level is ..... I kid you not.

[Luckysilk]

Now all the disgusting fatties will be lining up at Swensens and DQ for their fix.