INTERACTIVE: Malaysia among 124 nations tackling health issues with sugar tax

By SHYAFIQ DZULKIFLI
 

PETALING JAYA: Malaysia is among 124 countries worldwide that have implemented a sugar-sweetened beverage (SSB) tax, according to the World Bank.

The latest data from the World Bank’s Global SSB Tax Database reveals that 119 countries have imposed the tax at the national level, while five countries have implemented it at the sub-national level, amounting to 13 sub-national SSB taxes.

In total, there are 132 verified SSB taxes, covering nearly half of the global population, although the extent of coverage varies.

 

 

Malaysia stands alongside five other Asean nations—Brunei Darussalam, Cambodia, Laos, Philippines, and Thailand—that have implemented a sugar tax to combat rising health issues like diabetes and obesity, positioning Malaysia as one of the regional frontrunners in this public health initiative.

However, neighbouring countries like Indonesia, Myanmar, Singapore, and Vietnam have yet to introduce similar measures. 

 

Most SSB taxes target sodas and energy drinks

In its report titled Taxes on Sugar-Sweetened Beverages: Summary of International Evidence and Experiences, the World Bank stated SSB taxes work to reduce sugar consumption and improve public health by increasing retail prices, raising public awareness, incentivizing sugary beverages reformulation, and generating government revenue.

Globally, SSB taxes cover a wide range of products, including carbonated drinks, energy drinks, syrups, flavored milk, sweetened and unsweetened juices.

Nearly all existing SSB taxes apply to carbonated drinks (sodas), covering 97% or, 129 out of 132 taxes.

Meanwhile, 131 SSB taxes cover energy drinks, with the exception of Mauritania.
 
 

 
 

 
 

All six Asean countries with SSB taxes imposed levies on carbonated and energy drinks.

Ironically, while the tax aims to reduce sugar consumption, more than one-third of global SSB taxes also apply to unsweetened bottled water.

In Asean, Cambodia, Laos, and Thailand include unsweetened water in their SSB tax, which weakens the price difference between sugary and healthier beverages, reducing the effectiveness of the tax.
 
 

Asean countries adopt excise taxes
The World Bank stated in its 2020 report that the excise taxes are considered the most effective tool to reduce consumption of unhealthy products by increasing the price of targeted items relative to healthier alternatives.

However, the structure and scope of SSB taxes vary worldwide.

Globally, 87% of SSB taxes (115 out of 132) take the form of excise taxes, a method adopted by all Asean countries with SSB taxes.

For instance, Malaysia’s current excise duty of RM 0.50 per litre applies to three categories of beverages: carbonated, flavored, and non-alcoholic drinks with more than 5 grams of sugar per 100ml; milk-based drinks with more than 7 grams of sugar per 100ml; and fruit and vegetable juices with more than 12 grams of sugar per 100ml. 

To put it simply, an extra 50 sen will be added to the cost of a one-liter sweetened beverage.

Brunei Darussalam imposes BND 0.40 per litre on sugary beverages, which includes waters (such as mineral and aerated waters) with added sugars, sweeteners, or flavorings, as well as other non-alcoholic beverages, excluding fruit and vegetable juices.

Additionally, Brunei applies a 5% tax on tea and coffee preparations, covering extracts, essences, and concentrates, including instant coffee, tea mixes, and similar products.

See how much the SSB tax rates are in other Asean countries below.