Thailand’s Legal Framework and Implementation Strategy on Salt Tax

The Excise Department is spearheading the development of a salt tax, drawing parallels to the successful implementation of the sugar tax in 2017. The proposed salt tax will adopt a tiered structure based on sodium content, increasing over three phases, with higher rates imposed on products containing elevated sodium levels.

Initially, the focus will be on non-essential food items, particularly snack foods. Essential staples such as instant noodles and seasonings are currently excluded from the plan to provide businesses with time to adjust their strategies and cope with the rising tax rates. The ultimate goal of this measure is to encourage the reduction of sodium levels in consumer products. However, the matter remains under discussion among stakeholders to foster a collaborative approach in improving tax measures and enhancing public health.

To ensure a smooth transition, the government plans to provide a transition period for the private sector and engage in extensive consultations with industry stakeholders, mirroring the five-year deliberation period preceding the sugar tax, which is being collected. This collaborative approach aims to balance public health objectives with economic considerations, allowing manufacturers sufficient time to reformulate products and adapt to new regulations.

 

Thailand’s Legal Framework and Implementation Strategy on Salt Tax_Bangkok Global Law