The Ministry of Health has reportedly lauded Malaysia’s sugar tax, citing a study that showed a 9.25 per cent drop in consumption of sugary drinks after it was implemented in 2019.
The Star reported a spokesman from the ministry proposing a further increase in the rate of the tax to maximise its efficiency.
“After two years and six months of implementing the tax, the findings of a study suggested it was relevant and effective,” the ministry told the paper.
“To maximise its effectiveness, there was a recommendation to increase the tax rate.”
The excise duty imposed on premixed sugar-sweetened beverages (SSB) — also called sugar tax — was introduced in 2019 at 40 sen per litre of SSB, where the total sugar content of the beverage exceeds 5 grams/100ml.
It covers carbonated and non-carbonated drinks, milk-based products, and fruit and vegetable juices with sugar content.
In October, Prime Minister Datuk Seri Anwar Ibrahim announced an increase of 10 sen to the duty, making it 50 sen per litre.
The ministry also divulged that the ministry has been lobbied to follow the World Health Organisation’s (WHO) recommendation of a minimum 20 per cent sugar tax rate compared to a drink’s retail price to reduce consumption of SBB by up to 21 per cent.
At 40 sen per litre, the tax currently made up over 8 per cent of the total retail price of SSBs.
“Even though it falls short of the WHO’s ideal recommendation, Malaysia’s tax hike is a step towards achieving healthier beverage consumption patterns,” it said.
“This approach aims to make sugary drinks less attractive by increasing their cost and encouraging consumers to opt for healthier alternatives.”
This comes as the ministry said it expects seven million Malaysian adults aged 18 and above to be affected by diabetes by 2025.
