The 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. (File pic) PETALING JAYA: Several Malaysians have voiced their support for a proposed sugar tax hike from 50 to 90 sen per litre, but remain apprehensive about a call to remove subsidies of the commodity.
In 2019, the government levied an excise duty of RM0.40 per litre on all ready-to-drink packaged beverages that contain more than 5g of sugar per 100ml. The tax was raised to RM0.50 last year.
A civil servant, who asked to be identified only as Hafiz, told FMT the increase in tax was a good move because it would make members of the public think twice before consuming sugary beverages.
However, the 37-year-old said he failed to understand why beverages sold at eateries were exempted from the tax.
“Our people are still consuming regular Malaysian drinks like teh tarik, milo dinosaur and other sweet beverages at our mamak stalls. It might be more effective to encourage customers to consume alternative drinks like plain or iced water if the government is serious about curbing diabetes.”
He added that the government needs to think up other ways to entice people into reducing their consumption of sugar, adding that not many Malaysians have the willpower to choose the healthier options every time.
When tabling the 2025 budget last month, Prime Minister Anwar Ibrahim announced an increase in excise duty on sugary drinks by RM0.40 per litre beginning January next year. He said the move was intended to encourage a reduction in the intake of sugar, a major contributor to non-communicable diseases.
Deputy domestic trade and cost of living minister Fuziah Salleh said the price of coarse sugar used by traders in food and snacks will remain unchanged. She warned traders not to use the tax hike as an excuse to raise prices.
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.
Influencers, cafe-hopping trend may encourage higher sugar consumption
Nur Alia said there are numerous TikTok and Instagram reels showing influencers promoting sugary desserts and drinks on their platforms.
“These videos do not come with health warning tags,” she said, adding that many of these influencers have large followings.
She said that the practice among youth of cafe-hopping is also likely to indirectly contribute to an increased sugar intake.
Nur Alia, however, disagreed with the removal of the sugar subsidy. She said doing so 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.
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.
“Will our people be able to adjust and live with it? Can the people take it? I don’t think so. The government must implement its programme progressively.”
