fbpx

New July Sugar Tax (SSB)

malaysian custom logo

Royal Malaysian Customs Department introduced new sugar tax for sweetened beverages if the total sugar exceeded the threshold. This payment of importer of duty might bring increasing price of sweetened beverages.

The import of sugary beverages especially drinks must be declared in Form K1 (declaration of goods imported) just like other imported products. For domestic sales of dutiable sugary drinks, licensed manufacturers will use the Excise Form No.7 and the declaration will be for a period of one calendar month. This new changes will affect all F&B and retail businesses.

New excise tax shown in table below based on Royal Custom Department :

 

 

Tariff Code Category  Total Sugar Threshold Excise Duty Rate Example
2009  Fruit Juice  >12 gram/100 ml  RM0.40/liter Orange juice
2202  a) Carbonated drink, non-alcoholic drink except dairy-based drinks  >5 gram/100ml  RM0.40/liter

 Soda

Energy Drinks

Carbonated Drink

2202 b) Dairy-based drinks  >7 gram/100ml  RM0.40/liter  Milk with chocolate  flavor