What? Another tax? Haven’t we as Malaysians had enough of taxes? We are still reeling from the effects of Goods and Services Tax (GST ) which has made most things cost more, do we need sugar tax?
Sugar subsidy was abolished in Malaysia in 2013. However, this subsidy was not necessary in the first place. Why do we even need to be incentivized every time we put a spoonful of sugar in our mouth? The amount subsidized was 34 cents for every kilogram of sugar. What this means is that after the subsidy was removed, you pay RM0.0017 more for every teaspoon of sugar you used. That did not hurt one bit. So, it did not come as a surprise when the Health Minister Dr Subramaniam reported that the removal of sugar subsidy did not have the desired impact i.e. reduction in sugar consumption.
The World Health Organisation (WHO) recommends that a tax of 20% or more to have an impact on reducing sugary drinks consumption. There is a great push to reduce to intake of sugar in our diet. Obesity rate all over the world has climbed up stealthily. In Malaysia, 51% of our population are either overweight or obese! Malaysia also claimed bragging rights for being the fattest nation in South East Asia! These are shocking statistics which we need to curtail, before it gets any worse.
The high availability of sugar and sweetened foods coupled with increasingly sedentary lifestyles makes people put on excess weight. The effect of this is the rising prevalence of other non-communicable diseases such as diabetes, cancer, etc. Type 2 diabetes incidence now stands at 21% of Malaysian people, compared with 15% a decade ago.
Sugar is not a necessary nutrient. Essentially, we can completely omit sugar in our diet and we will not be worse off because of it. Many believe we need sugar for energy, but we can still get energy from our complex carbohydrates such as wholegrain cereals. According to the Consumers Association of Penang (CAP) survey, Malaysians consume 27 teaspoons of sugar a day. This is almost doubling what it was in the 1970s when it was 17 teaspoons/day and in the 1980s when it was 21 teaspoons/day. Malaysians have a sweet tooth. The Malaysian Adult Nutrition Survey 2003 reported that almost 40% of foods with added sugar was contributed by chocolate flavoured beverages, followed by cordial syrup, sweetened condensed milk, local kuih and carbonated drinks. Therefore, a sugar tax levied on all sugary drinks and foods would make them cost more.
Mexico introduced a sugar tax in 2011 and found a reduction of sugary drinks consumption by 5.5% after the first year and a further reduction of 9.7% in the subsequent year. The Danish people however, resorted to crossing the borders to get cheaper sugar from their neighbours. Other countries such as Brunei, Hungary and France have recently implemented a sugar tax. In the UK a 2-tier tax will be enforced come April 2018. If a product contains 5g sugar or more per 100ml, an 18 cents tax will be imposed for every 1 litre. If a product has 8g sugar or more per 100ml, a higher 24 cents tax will take effect.
The purpose of this tariff should not be to increase the coffers of the government. Proceeds from this tax can be channeled to programmes to encourage sports in youths, implement health promotions, or even subsidizing healthy foods. This tax ideally should lead to the cost of foods with less sugar costing less, therefore the consumer chooses the product which contains less sugar. For the manufacturers, it would be in their interest to reduce the sugar content in their products, thus they are taxed less and can price their products competitively. The food industry including the restaurateurs, food vendors should reduce the amount of sugar in the food and drinks they serve, so that their costs do not increase. When you create an environment where everything available has less sugar, it makes it easier for the consumer to choose to eat healthier.
As unpopular as this tax may be, this tax is for the good of its people. For it to be effective, it must be a multi-prong effort –all stakeholders must be involved. Consumers should try to get used to consuming foods/drinks which are less sweet. Parents must limit the availability of sugary drinks/foods at home. Schools must make sure sugary drinks are not sold on its premises. Advertisements promoting sugary drinks/foods must be banned. Food manufacturers must come on board and reduce the content of sugar in all their products. The food industry should also do its part and reduce the content of sugar in the food /drinks they offer. Government should also support this endeavour with nationwide activities to promote healthy living.
Sugar subsidy was abolished in Malaysia in 2013. However, this subsidy was not necessary in the first place. Why do we even need to be incentivized every time we put a spoonful of sugar in our mouth? The amount subsidized was 34 cents for every kilogram of sugar. What this means is that after the subsidy was removed, you pay RM0.0017 more for every teaspoon of sugar you used. That did not hurt one bit. So, it did not come as a surprise when the Health Minister Dr Subramaniam reported that the removal of sugar subsidy did not have the desired impact i.e. reduction in sugar consumption.
The World Health Organisation (WHO) recommends that a tax of 20% or more to have an impact on reducing sugary drinks consumption. There is a great push to reduce to intake of sugar in our diet. Obesity rate all over the world has climbed up stealthily. In Malaysia, 51% of our population are either overweight or obese! Malaysia also claimed bragging rights for being the fattest nation in South East Asia! These are shocking statistics which we need to curtail, before it gets any worse.
The high availability of sugar and sweetened foods coupled with increasingly sedentary lifestyles makes people put on excess weight. The effect of this is the rising prevalence of other non-communicable diseases such as diabetes, cancer, etc. Type 2 diabetes incidence now stands at 21% of Malaysian people, compared with 15% a decade ago.
Sugar is not a necessary nutrient. Essentially, we can completely omit sugar in our diet and we will not be worse off because of it. Many believe we need sugar for energy, but we can still get energy from our complex carbohydrates such as wholegrain cereals. According to the Consumers Association of Penang (CAP) survey, Malaysians consume 27 teaspoons of sugar a day. This is almost doubling what it was in the 1970s when it was 17 teaspoons/day and in the 1980s when it was 21 teaspoons/day. Malaysians have a sweet tooth. The Malaysian Adult Nutrition Survey 2003 reported that almost 40% of foods with added sugar was contributed by chocolate flavoured beverages, followed by cordial syrup, sweetened condensed milk, local kuih and carbonated drinks. Therefore, a sugar tax levied on all sugary drinks and foods would make them cost more.
Mexico introduced a sugar tax in 2011 and found a reduction of sugary drinks consumption by 5.5% after the first year and a further reduction of 9.7% in the subsequent year. The Danish people however, resorted to crossing the borders to get cheaper sugar from their neighbours. Other countries such as Brunei, Hungary and France have recently implemented a sugar tax. In the UK a 2-tier tax will be enforced come April 2018. If a product contains 5g sugar or more per 100ml, an 18 cents tax will be imposed for every 1 litre. If a product has 8g sugar or more per 100ml, a higher 24 cents tax will take effect.
The purpose of this tariff should not be to increase the coffers of the government. Proceeds from this tax can be channeled to programmes to encourage sports in youths, implement health promotions, or even subsidizing healthy foods. This tax ideally should lead to the cost of foods with less sugar costing less, therefore the consumer chooses the product which contains less sugar. For the manufacturers, it would be in their interest to reduce the sugar content in their products, thus they are taxed less and can price their products competitively. The food industry including the restaurateurs, food vendors should reduce the amount of sugar in the food and drinks they serve, so that their costs do not increase. When you create an environment where everything available has less sugar, it makes it easier for the consumer to choose to eat healthier.
As unpopular as this tax may be, this tax is for the good of its people. For it to be effective, it must be a multi-prong effort –all stakeholders must be involved. Consumers should try to get used to consuming foods/drinks which are less sweet. Parents must limit the availability of sugary drinks/foods at home. Schools must make sure sugary drinks are not sold on its premises. Advertisements promoting sugary drinks/foods must be banned. Food manufacturers must come on board and reduce the content of sugar in all their products. The food industry should also do its part and reduce the content of sugar in the food /drinks they offer. Government should also support this endeavour with nationwide activities to promote healthy living.
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