MOH conducting study on taxing sugar

KUALA KANGSAR: The Health Ministry is conducting a study on whether a tax on sugar should be imposed in an effort to reduce consumption.
Its Minister Datuk Seri Dr S. Subramaniam (pix) said the ministry is looking at all options before deciding on the matter.
"From the health point of view we need to know whether such a move will reduce the consumption of sugar.
"We withdrew the subsidy for sugar in 2013 and subsequently the price went up ... the government is now looking at whether the move had any positive effect on consumption or otherwise," he told reporters after officiating the Ulu Kenas clinic building here today.
He said if the withdrawal had no effect, the ministry needs to find out the reasons, adding that the withdrawal of the subsidy is equivalent to imposing a tax.
Subramaniam was commenting on a statement by his deputy Datuk Seri Hilmi Yahaya that the government is mulling the possibility of taxing manufactured sugary drinks to reduce consumption and the cost of treating diabetes.
Hilmi had said that a tax on sugar could not be imposed as the prices range from RM2.20 per kg to RM2.85 following the removal of the subsidy.
"Instead, we are looking at taxing local and imported manufactured drinks that contain sugar," he said when answering Senator Tan Sri Abdul Rahim Abdul Rahman's oral question at the Dewan Negara on Thursday.