Will growing up milk be taxed under 2023 Budget? Fomca ask KJ
MINDERJEET KAUR06 Sep 2022 09:00am
Fomca president Datuk Marimuthu Nadason (left) told Health Minister Khairy Jamaluddin that milk is a basic necessity for growing children and should not be included in the sugar expansion list.
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SHAH ALAM - Consumer and local manufacturers have raised concerns over expanding sugar tax to growing up milk for one to nine-year-olds.
This comes after health minister Khairy Jamaluddin announced that infant formula for newborns would not be included from the sugar tax expansion list.
Federation of Malaysian Consumers Association (Fomca) president Datuk Marimuthu Nadason said milk is a basic necessity for growing children and should not be included in the expansion list.
"We now know infant milk won't be included but what about growing up milk? They should not include essentials such as milk products in the expansion list as the country is battling malnourishment and stunting issues among children," he told Sinar Daily.
He urged the health ministry to consider the list to ensure the items does not include essential items and does not hit low-income families.
Combat poor eating habits through awareness, not tax
Meanwhile, the Federation of Malaysian Manufacturers (FMM) urged the government not to impose a selective tax to promote health and wellness concerns.
In a statement, it said there are other ways of promoting healthy lifestyle rather than imposing through sugar tax.
"There is little if any, evidence that taxing certain foods and beverages affects consumer purchasing behaviour in the long term and the incidence of obesity and Non-Communicable Diseases (NCDs)," FMM told Sinar Daily in a statement.
It said the food and beverage industry understands and supports the government’s efforts to address and combat prevailing health issues.
"However, we disagree that selective taxation is an effective means to address health and wellness concerns.
The sugar tax came into effect on July 1, 2019, whereby an excise tax of 40sen per litre was levied on sugar-sweetened beverages with a total sugar content exceeding 5gm/100ml.
It was also noted in the ongoing 12th Malaysia Plan that the sugar tax would be expanded to include premix drinks which may consist of powder milk.
However, FMM said the industry is facing multiple challenges in ensuring a stable and affordable supply of food and beverage products to the nation due to the pandemic and other factors impacting global supply chains and logistics.
"Any imposition of an excise on food and beverage products at present will further erode the purchasing power of the lower income group in accessing nutritious food and beverage products," it said.
It further called on better policies to improve health awareness with the Healthier Choice Logo (HCL) initiative to educate consumers on the availability of such products in the marketplace.
"Intensive collaboration among multiple stakeholders is necessary for the long-term fight against obesity and NCDs," it said.
As manufacturers, FMM said it contributes by formulating new products with improved nutritional values.
It also uses responsible marketing and labelling, driving more awareness, advocacy, and education to raise the importance of a healthy lifestyle.
