Although they acknowledge that it will help to control food-related non-communicable diseases like diabetes, they are concerned that retailers and food outlet operators will take advantage of the tax to hike up the prices of other foodstuffs that are not covered by the tax.

They also suggest that the government take other proactive measures to address obesity and the high number of Malaysians suffering from lifestyle diseases.

Last Thursday, Deputy Health Minister Dr Hilmi Yahaya said his ministry was planning to impose a tax on imported or locally produced sugar-sweetened beverages in an effort to control obesity and non-contagious diseases related to food.

He said the proposal was also included in the government’s National Plan of Action on Nutrition III and policy options for the years 2016-2025.

Replying to a question raised at the Dewan Negara last Friday, Health Minister Dr S. Subramaniam said the proposed tax was currently under discussion at the ministry-level and that its implementation was subject to approval by the Finance Ministry.

Detailed study

Federation of Malaysian Consumer Associations (Fomca) Vice-President Siti Rahayu Zakaria said the Health Ministry’s proposal had its advantages and disadvantages – while it would address Malaysia’s rising obesity levels, it had the potential of being abused by businesses.

Urging the government to carry out a detailed study on the proposal, she said should the government decide to go ahead with the tax, it must make sure that retailers and food operators did not raise the prices of foodstuffs that were not covered by the tax.

“They shouldn’t be allowed to take advantage of the tax,” she said, adding that Fomca, however, agreed with the proposal in principle as it was concerned about the excessive use of sugar in processed foods and drinks and want Malaysians to adopt healthy eating habits from a young age.

“If the tax on sugar-sweetened beverages is introduced, we expect consumers to either stop buying or limiting the consumption of those beverages, and opt for healthier choices, which is definitely a good thing,” she told Bernama.

She also said besides the proposed tax, the government should consider other, more effective, alternatives to educate the public on healthy eating and living.

Traffic light labelling system

Siti Rahayu, meanwhile, suggested that Malaysia introduce the “traffic light” nutritional labelling concept, whereby the nutritional content of packed or canned food and drinks were conveyed via colour codes, which was used extensively in Australia and other advanced countries.

“The colour red indicates that the food (or beverage) is not healthy and may contain excessive levels of sugar, fat or MSG (monosodium glutamate); green indicates healthy levels (of ingredients) and amber, moderate,” she explained.

She said the traffic light system made it easier for consumers to make more informed choices when shopping for food as the colours on the labels alone were self-explanatory.

“Just by looking at the (colours on the) label, and without having to peer at the details of its nutritional contents, they will know whether a particular foodstuff is healthy or not.

“This way, not only do they feel obliged to buy healthier food, but they also get a better grasp of what they are actually eating,” she said.

Siti Rahayu said she found traffic light labelling an effective educational tool, adding that “the best way to enhance public awareness on healthy eating is through education, and we believe that the (traffic light) concept will have a positive impact on consumers’ buying habits when they shop for food”.

She added that it was important for the public to take heed of the quality of food they ate because, according to a study carried out by Fomca in 2014 on the dietary habits of 15 schoolchildren aged between five and 15, it was found that 60 per cent of them preferred to consume food and beverages containing high levels of sugar, like soft drinks and snacks.

Long-term benefit

Muslim Consumers Association of Malaysia chief activist Nadzim Johan, meanwhile, opined that Malaysia needed more proactive measures to combat obesity and control lifestyle-related diseases.

“The proposed tax (on sugar-sweetened beverages) seems okay but the government must study its long-term benefits. Then again, taxation alone will not help… our country needs more proactive action because diseases like diabetes have already been around for ages.

“The government must first find out what the leading causes of such diseases are. They are not necessarily caused by (excessive consumption) of sugar… they could be caused by other foodstuffs or unhealthy lifestyle habits,” he said.

Nadzim, however, felt that it would not be wrong to impose a tax on sweet beverages as it would discourage consumers from purchasing such drinks, and make them choose healthier options instead.

“Furthermore, the proposed tax is only for imported or locally processed sugar-sweetened beverages. The truth is, all those sweet and aerated drinks are bad for health, so why drink them?” he said, adding that he hoped that retailers would not use the tax as an excuse to raise the prices of other foodstuffs and beverages.

“It’s not sugar per se that’s going to be taxed, but processed beverages that contain sugar,” he said, adding that it would be a different story altogether if sugar was taxed as it would have far-reaching implications for households.

– BERNAMA