Thailand has entered the final phase of its sugar excise tax scheme, a policy designed to curb excessive sugar consumption and improve public health outcomes. As of April 1, 2025, the Excise Department began enforcing Phase 4 of the sugar tax, increasing levies on sweetened beverages based on their sugar content, according to the Ministry of Finance.
The measure, part of a long-term plan initiated in 2017, raises taxes on sugary drinks that exceed specific sugar thresholds. It targets beverage manufacturers who have not reformulated their products to reduce sugar content, encouraging the industry to make healthier offerings.
Under the revised structure, drinks containing 10–14 grams of sugar per litre now face a tax of 5 baht per litre, up from 3 baht. Beverages with 6–8 grams of sugar are taxed at 1 baht per litre, a significant rise from the previous 0.3 baht. Drinks with 8–10 grams now face a 3 baht levy, up from 1 baht. Those containing 6 grams or less remain exempt, while beverages with sugar levels of 14–18 grams or more are still taxed at 5 baht per litre.
Officials state this final tax phase is unlikely to cause a noticeable rise in consumer prices, as many producers have already modified their recipes to reduce sugar content. These adjustments include using artificial or alternative sweeteners, which help mitigate health concerns while keeping products affordable.
Data from 2018 to 2023 show a significant shift in product formulations. The number of drinks with sugar content of 6 grams or less increased from 90 to 4,736, while those in the 6–8 gram bracket rose from 758 to 2,900. Conversely, high-sugar beverages saw sharp declines. Products with more than 14 grams of sugar per litre dropped from 819 to zero, while those with 10–14 grams declined from 2,993 to 524.
The Excise Department’s latest update marks the culmination of an eight-year policy aimed at reducing rates of diabetes, obesity, and related diseases by influencing consumer and industry behavior.
Officials involved in overseeing the policy implementation were not named in the department’s official statement.
