ASEAN Food and Beverage Alliance 2

ASEAN Food & Beverage Alliance comments on proposed excise tax on carbonated soft drinks

ASEAN Food and Beverage Alliance 1Carbonated non-alcoholic beverages are fundamentally different to normally taxable products. These differences make carbonated non-alcoholic beverages inappropriate products for selective excise duties. Tiếng Việt

•  Carbonated non-alcoholic beverages are not harmful to health: There is a clear and important distinction between products that invariably generate harm to health, such as tobacco, and those whose impacts depend on a number of factors including the quantity and frequency of consumption.

• Carbonated non-alcoholic beverages do not generate ‘negative externalities’: Costs only arise when large segments of the population routinely consume certain non-alcoholic beverage products in ways that are unhealthful.

• Carbonated non-alcoholic beverages are not luxury goods3: non-alcoholic beverages generally account for an important share of the budget of low- and middle-income consumers. Introducing a tax on carbonated non-alcoholic beverages is regressive since the poorest consumers spend a greater proportion of their income on non-alcoholic beverages than wealthier households.

Taxes on non-alcoholic beverages are demonstrably ineffective. In countries where these taxes have been introduced they have not been effective in lowering rates of overweight and obesity, and have not contributed to improving health. 4

The prevalence of overweight and obesity is a multi-factorial issue requiring complex solutions. The food and beverage industry understands the challenge and is responding. We are beginning to see tangible benefits of a self-regulatory approach and we will continue to nurture innovation and change.

Tiếng Việt

Statement by the ASEAN Food & Beverage Alliance, Mar 2014

Click the below photo for a list of members of the ASEAN Food & Beverage Alliance.

ASEAN Food and Beverage Alliance 2