Implementation of Sugar Tax in Malaysia Postponed to July

April 2019

After taking into account feedback from stakeholders, the Malaysian government decided to postpone the implementation of sugar tax on soft drinks and juices to July 1 from the previously announced April 1. This postponement aims to give manufacturers and the Customs Department sufficient time to make the required preparations. It will allow the Customs Department to conduct roadshows and issue licenses to sugar-based beverage manufacturers.

It was reported that a 40 sen ( USD 0.90)  tax per liter would be imposed on soft drinks with more than five grams of sugar or sugar-based sweetener per 100ml. This will include carbonated drinks, or flavored and other non-alcoholic beverages.

The sugar tax introduced during the budget speech last year, is part of the government’s efforts to promote a healthy lifestyle for the population. Sweetened beverages affected include all packaged drinks containing more than 5g of sweeteners per 100ml, fruit and vegetable juices with more than 12g of sweeteners per 100ml, and milk-based beverages containing more than 7g of sweeteners per 100ml. However, this tax does not cover drinks prepared and served at eateries. 

(Source : New Straits Times; Malay Mail; Free Malaysia Today)




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