Page 32 - FoodFocusThailand No.192 March 2022

SPECIAL REPORT
SPECIAL REPORT

Thailand’s Upcoming Salinity Tax

Imposes a New Challenge

for the High-sodium Food Sector

The Thai government is planning a guideline on salt taxation, which is to be announced in 2022. A reasonable
period of operational adjustment is expected to precede the enforcement date of the policy to allow for food
operators to conduct any necessary preparation for the change. The operators’ and consumers’ preparedness,
along with the economic conditions, will be taken into consideration. The main objective is to reduce sodium
consumption among Thai consumers.

According to research conducted by the Thai Health Promotion Nevertheless, the government should allow for an appropriate
Foundation (THPF) and the Nephrology Society of Thailand , the average timeframe for business adjustment so that manufacturers can make
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sodium intake in the Thai population is at 3,636 mg per day, which is proper preparation to accommodate change. A practical approach is
almost double the daily amount of 2,000 mg. recommended by WHO. to impose progressive taxation directly on food manufacturers. In
Excessive sodium consumption may contribute to several NCDs, such other words, higher tax rates will be imposed on foods with higher
as chronic kidney disease, hypertension, heart disease, stroke, and sodium content. Tax rates should be structured in accordance with
diabetes. The medical expenses derived from these five categories of food types — a method similar to that used for sugar-sweetened
illness are estimated to be at least THB 100 billion per year , making beverages.
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up almost one-fourth of the country’s total medical expenses of THB Once the salinity taxation is implemented, food operators will
400 billion. inevitably be affected. However, several other factors are at play, such
The government and its corresponding agencies have continuously as tax rates, enforcement timeframe, market competitiveness, and
been promoting the reduction of sodium consumption among the Thai food manufacturers’ ability to handle change. Even though the salt
population through different campaigns. Also, the compulsory display of tax is still under consideration, the trend in which more consumers
sodium information on GDA nutrition labels shows the sodium content are now turning to healthier food choices and becoming more
in amount per package per consumption unit and percentage of the environmentally conscious is another variable that will urge food
highest recommended daily intake. Such regulation is imposed on 13 operators to adapt themselves more quickly. The taxation on salty
types of food and beverage, including snacks, convenience food, and foods may be a new tool that can help pave the way towards the
frozen/chilled ready-to-eat food. Among all instant and convenience reduction in sodium consumption. Still, the overall success also
foods valued at several hundred billion bahts annually, the salty foods, depends on other measures, especially the campaigns that encourage
whose sodium content is measured in mg per package, can potentially consumers to change their consumption behavior toward nutrition
be most affected by the new taxation. principles.
According to a survey, high-sodium foods can be divided into the six As a case study, Singapore encourages its population to lower
following types in accordance with their sodium amount per package, sodium consumption through Healthier Ingredient Schemes, in which
ranging from high to low: instant noodle, frozen/chilled food, instant restaurants are encouraged to use healthy ingredients or healthy
congee, ready meal, canned fish, and snack. The market value of these additives in their foods, thus reducing the overall salt intake. Stemming
products in 2022 is estimated at THB 88 billion , making up 18% of the from the original certificate of Healthier Choice Symbol (HCS) , the
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total value of the instant and convenience food market . In addition to “Lower in Sodium HCS” certification is invented and awarded to the
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the increasing production costs, higher energy costs, rising palm oil foods that contain 25 percent lower sodium than other similar products
prices, and logistical limitations, all of which go against the current of the same category, such as sauce, canned, and processed meat,
sluggish purchasing power that requires more time to recover and the processed food with seafood as main ingredients, bean, and cereal.
soaring cost of living due to inflation. The manufacturers of high-sodium The project is aimed to facilitate consumers in their buying decisions
foods will also have to deal with the challenges and urgency of business when it comes to healthy food products.
adjustment once the government publishes the guideline and officially
enforce the taxation on salty foods.

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