As the Thai government’s proposal to introduce a tiered excise tax on salt content in food products has prompted calls from major food manufacturers for comprehensive and inclusive public hearings. Industry leaders emphasize that stakeholder engagement is crucial in shaping regulations that will have widespread implications for both producers and consumers.
The Excise Department plans to implement the salt excise tax later this year, starting with products categorized as snacks. The tax structure will be based on sodium content, aligning with the government’s broader objective to reduce national sodium consumption, which currently exceeds recommended levels by nearly twofold.
Despite the significant implications of the proposed measure, no public hearings have been officially announced. Many manufacturers strongly advocate public hearings that include all relevant stakeholders to ensure that the regulation reflects a balanced and comprehensive understanding of its impact.
It is still questionable whether the legal framework for the salt tax will impose to all food products containing salt, including fresh market items or even Thai traditional dishes with high sodium content.
Another key issue is the potential economic impact of the tax. It is questioned whether the cost burden will fall on consumers or be absorbed by manufacturers. He noted that, depending on how the tax system is structured, businesses may ultimately pass the tax on to consumers.
Currently, there is limited information available regarding the tax collection mechanism, product declaration obligations, inspection procedures, and the criteria for assessing the effectiveness. Without these details, the industry remains uncertain about the practical implementation and enforcement of the new regulation.
As the government moves forward with this health-focused initiative, legal and regulatory clarity, coupled with stakeholder consultation, will be vital to ensuring that the salt excise tax achieves its intended public health objectives without placing undue strain on the food industry or consumers.