Thailand’s Ministry of Finance is exploring new taxes on high-salt and high-fat products as part of a public health initiative aimed at reducing sodium and fat consumption by 30%, Deputy Finance Minister Paopoom Rojanasakul announced on Tuesday. If implemented, the taxes would apply specifically to products based on their salt content and types of fat, aiming to curb excessive intake linked to major health issues.
Health advocates, including the group Less Salt, have raised concerns over Thailand’s high average sodium consumption, reporting that Thais consume approximately 3,636 milligrams daily, far above the 2,000 mg recommended by the World Health Organization. High sodium intake is known to contribute to health risks, including high blood pressure, kidney disease, heart conditions, and stroke.
Following discussions with the Excise Department, Paopoom highlighted five sectors where excise taxes could support public health, environmental concerns, and economic restructuring. These areas include automobiles, oil, public health, batteries, and tobacco. On the public health front, he suggested that tax mechanisms could help decrease the consumption of harmful foods, ultimately easing burdens on the healthcare system.
In the auto sector, Paopoom proposed tax policies that encourage investment and development across the supply chain, supporting both vehicle production and employment. This approach includes incentives for producing plug-in hybrid electric vehicles, battery electric vehicles, and fuel cell electric vehicles, while gradually shifting from internal combustion and hybrid engines. A phased approach would allow for short-term revenue losses in favor of long-term industry restructuring.
For oil, the ministry is considering a carbon pricing mechanism within excise taxes on six oil products to promote lower carbon emissions among consumers and businesses without disrupting energy prices.
The Excise Department is also studying the effects of an additional “fat tax” and extending the existing mixed-sweet tax into its fourth phase. Companies impacted by these taxes would be given transition periods before the changes are enforced.
In the battery sector, Paopoom recommended adjusting the fixed 8% tax to a tiered rate, reflecting energy costs, battery life cycles, and specific types to support clean battery and electric vehicle industries.
The Finance Ministry also aims to revise the single-rate tobacco tax structure to reduce price discrepancies, considering both business competitiveness and the needs of local tobacco farmers. To curb the illegal cigarette market, QR code-based monitoring could be introduced, allowing consumers to verify tax and source information.
