The government has announced plans to raise the excise duty on sugar-sweetened beverages to 90 sen per litre next year, up from the current rate of 50 sen.
This increase of 40 sen, was announced by Prime Minister Datuk Seri Anwar Ibrahim during the presentation of Budget 2025 on Friday, as part of the initiative to support the “war on sugar” movement.
Anwar says the government plans to gradually increase the excise duty on sugary drinks starting from January 1 by 40 sen per litre, from the current 50 sen.
This marks the second consecutive year that the sugar tax has been increased; it was raised from 40 sen to 50 sen earlier this year as part of Budget 2024.
The sugar tax was first introduced in 2019, initially set at 40 sen per litre for ready-to-drink beverages containing over five grams of sugar per 100ml.
