Government Proposes Sugar Tax Hike to Combat Non-Communicable Diseases
The Malaysian government has proposed to raise the excise duty on sugary drinks by RM0.40 per litre in 2025 in a bid to lower the intake of sugar, a major contributor to non-communicable diseases.
Public Opinion on Sugar Tax Hike
Several Malaysians have voiced their support for the proposed sugar tax hike from 50 to 90 sen per litre, but remain apprehensive about a call to remove subsidies of the commodity. A civil servant, who asked to be identified only as Hafiz, told FMT that the increase in tax was a good move because it would make members of the public think twice before consuming sugary beverages. However, he failed to understand why beverages sold at eateries were exempted from the tax.
Influencers and Cafe-Hopping Trend May Encourage Higher Sugar Consumption
Nur Alia, a 22-year-old university student, agreed with the increase in excise duty and said she will reduce her consumption of sweetened packaged drinks. However, she was not optimistic that the tax hike would have a significant impact on sugar intake among the younger generation. She pointed out that numerous TikTok and Instagram reels show influencers promoting sugary desserts and drinks on their platforms, which may indirectly contribute to an increased sugar intake.
Sugar Subsidy Removal
Nur Alia disagreed with the removal of the sugar subsidy, saying it would impact the affordability of food and beverages. The government currently provides a subsidy to sugar manufacturers at the rate of RM1 per kilogramme of sugar, costing around RM500 million to RM600 million yearly. Critics, including the Galen Centre for Health and Social Policy, have repeatedly called for a removal of the subsidy, saying money saved could instead be invested in health education, preventive interventions and healthy breakfast programmes for school children.
Public Reaction
Lee, a 72-year-old retiree, hailed the government’s bid to combat the rising rate of diabetes in the country. "Prevention has to start early and I think increasing the tax is a good move to curb that," he said. However, he too said that Malaysians may not be in a position to absorb the higher cost of food and drink if the sugar subsidy was removed suddenly.
Conclusion
The proposed sugar tax hike is a step in the right direction to combat non-communicable diseases in Malaysia. However, it is crucial to consider the potential impact on the affordability of food and beverages and to implement the programme progressively. The government must also consider alternative ways to encourage people to reduce their consumption of sugar, such as promoting healthier options and providing education on the risks of sugar consumption.
FAQs
Q: What is the proposed sugar tax hike?
A: The government has proposed to raise the excise duty on sugary drinks by RM0.40 per litre in 2025.
Q: Why is the sugar tax hike necessary?
A: The sugar tax hike is intended to encourage a reduction in the intake of sugar, a major contributor to non-communicable diseases.
Q: Will the sugar tax hike have a significant impact on sugar intake among the younger generation?
A: Some experts are skeptical that the tax hike will have a significant impact on sugar intake among the younger generation, citing the influence of social media and cafe-hopping trends.
Q: What is the current sugar subsidy?
A: The government currently provides a subsidy to sugar manufacturers at the rate of RM1 per kilogramme of sugar, costing around RM500 million to RM600 million yearly.
Q: Why is the sugar subsidy removal being considered?
A: Critics, including the Galen Centre for Health and Social Policy, have repeatedly called for a removal of the subsidy, saying money saved could instead be invested in health education, preventive interventions and healthy breakfast programmes for school children.