TAIPEI (TVBS News) — Legislators from the Democratic Progressive Party (DPP, 民進黨) urged the Ministry of Finance (財政部) on Tuesday (June 17) to adjust the Commodity Tax Act (貨物稅條例) to implement a 0% tax rate on sugar-free beverages. This call aims to promote healthier consumer choices by reducing taxes on sugar-free drinks, as the Legislative Yuan plans to review amendments to the act on Wednesday.
Legislator Chung Chia-pin (鍾佳濱) noted that the current tax rate for sugar-free tea and functional drinks matches that of sugary beverages. Chung hopes a tax reduction will encourage consumers to choose sugar-free options. Legislator Lee Kuen-cheng (李坤城) emphasized that exempting sugar-free beverages from taxes aligns with Article 8 of the act, which already exempts pure natural juices.
Legislator Kuo Yu-ching (郭昱晴) highlighted that countries like the U.K., South Africa, Mexico, and some U.S. states have reduced sugary drink consumption through taxation, suggesting that tax cuts on sugar-free drinks offer more flexibility. Legislator Ngalim Tiunn (張雅琳) cited Health Promotion Administration data showing that 50.8% of citizens over 18 are overweight or obese, urging action to reduce national insurance costs.
Lin Yueh-chin (林月琴) pointed out that according to the Ministry of Health and Welfare (衛福部), health issues from sugary drinks cost National Health Insurance NT$23.3 billion annually. Lin believes tax exemptions for sugar-free drinks could incentivize manufacturers to save on taxes. Lai Hui-yuan (賴惠員) acknowledged that the tax exemption might reduce national revenue by NT$300 million to NT$500 million but deemed it a worthy trade-off for public health. Wang Cheng-hsu (王正旭) warned of a growing diabetes epidemic, with 2.5 million affected and 25,000 new cases annually, stressing its impact on life expectancy.
