Too Much of a Good Thing
In 2019, the Malaysian government introduced the so-called
"Sugar Tax" as a means of addressing the growing
prevalence of obesity and diet-related non-communicable diseases
like diabetes by increasing the cost of Sugar Sweetened Beverages
("SSB").1
The Sugar Tax came into force on 1st July 2019 through the
Excise Duties (Sweetened Beverages) (Payment) Order 2019 [P.U. (A)
176/2019] ("SBPO"), which was gazetted on 28th June 2021.
The SBPO was made pursuant to subsection 6(1) of the Excise Act
1976.
Containing six sections, the SBPO sets out the governing
principles of the Sugar Tax. The Sugar Tax is an excise duty which
is levied on the manufacture or warehousing of SSB in Malaysia, as
well as the importation of SSB into the country from overseas.
