Indirect Tax Alert
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Issue No. 44/2024 | 16 December 2024
Increase in Excise Duty on Sugar Sweetened Beverages
The Excise Duties (Amendment) (No. 2) Order 2024 dated 13 December 2024 has been issued to increase the rate of excise duty from RM0.50 per litre to RM0.90 per litre effective from 1 January 2025 for those sugar sweetened beverages (SSB) subjected to excise duty under the Excise Duties Order 2022 and under the Harmonized System (HS) heading codes of “20.09” and“22.02”.
PwC Comment
The rate of increase and the effective date are as per the Budget 2025 announcement made on 18 October 2024. However, please take note that the increase is a single increase and not in phases as announced in the Budget 2025.
Manufacturers of SSB should take note of this single huge increase in the excise duty and make the necessary plans in pricing and inventories as well as communications to the relevant parties.
If you think your business may be affected by the above change or if you need any clarification or assistance, please do not hesitate to contact us and we would be happy to assist you.
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