2016 Food and Non-Alcoholic Beverages Tax Updates in ASEAN ...blogs.commons.georgetown.edu/ms3872/files/2016/07/2016-Food-a… · 21/07/2016 · 2016 Food and Non-Alcoholic Beverages

ASEANRegion:2016FoodandNon-AlcoholicBeverageTaxUpdates

MAYSHANDIASummerAssociate2016

2016FoodandNon-AlcoholicBeveragesTaxUpdates|

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CONTENTSACRONYM&DEFINITION |3

INTRODUCTION |4

THAILAND |5

MALAYSIA |9

PHILIPPINES |12

INDONESIA |15

VIETNAM |18

MYANMAR(BURMA) |21

SINGAPORE |23

CAMBODIA |25

LAOSPDR |27

BRUNEIDARUSSALAM |29

REFERENCES |31


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ACRONYMAEC–ASEANEconomicCommunityASEAN–TheAssociationofSoutheastAsianNationsBR1M–BantuanRakyat1MalaysiaDGT–DirectorateGeneralofTaxationGST–GoodsandServicesTaxIDR–IndonesianRupiahIMF–TheInternationalMonetaryFundKHR–CambodianRielLAK–LaoKipMMK–BurmeseKyatMOF–MinistryofFinanceMYR–MalaysianRinggitNDC–Non-CommunicableDiseasesNRSA–TheNationalReformSteeringAssemblyOPEC–OrganizationofPetroleumExportingCountriesPHP–PhilippinePesoSGD–SingaporeDollarSGT–SpecialGoodTaxTHB–ThaiBahtUN–TheUnitedNationVAT–Value-AddedTaxWTO–TheWorldTradeOrganization

DEFINITIONSSpecialexcisetax–aspecificoffixedamounttaxbasedonweightorvolumeofthefinalproductoftheweightorvolumeofcertainingredientsusedintheirproduction(e.g.fatorsugarcontent).Advaloremexcisetax–ataxleviedonthesaleofgoods,determinedasapercentageofthegrossvalue of cost of the product as point of sale (e.g. 30% of the pre-sales tax price paid by theconsumer.VATorsalestax–ataxonthevalueaddedtoaproduct(VAT)oronthefinalsaleoftheproduct(salestax).Indirecttaxes–aretaxesthatarecollectedbyintermediarieswhoturnovertheproceedstothegovernmentandwhoareresponsibleforfillingtherelatedtaxreturn.Excisetax–ataxleviedonthemanufacture,saleorconsumptionofasinglegoodorserviceoronarelativelynarrowrangeofgoodsorservices.1Zero-ratedgoods–productsonwhichVATisnotlevied.2

1TheEncyclopediaofTaxationandTaxPolicy–JFredGiertz,UniversityofIllinois,October1999.2http://www.investopedia.com/terms/z/zero-rated-goods.asp


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INTRODUCTIONASEAN is one of the world’s most diverse, fast-moving, and competitive

economicregions.Composedof10membernations,ASEANiscurrentlytheseventhlargesteconomyintheworldanditisestimatedtobethefourthlargestby2050.Additionally,ASEANisthethirdlargestlaborforceintheworld.TheAECstrengthensitsinter-regionaltradeandproductionbasethroughthefreemovementofskilledlabor,capital,goods,andservices.ASEANisthefourthlargestexportingregioninthe world, after the EU, US, and China. The community also has around 230internationalcompanieswithmorethan$1billioninrevenues,each.

This report provides the latest information related to indirect taxation,includingexcisetaxes,VAT,GST,commercialtaxes,andothertypesofequivalentconsumptionbasedtaxeswithintheASEANcommunity.ThisreportaddresseseachASEAN country’s current tax regime, any government proposed tax changes,stakeholderprofiles, andany sugar tax issues.Moreover, currently, someASEANcountries plan to impose sugar taxes on non-alcoholic beverages to cut sugarconsumptionasthenumbersofpeoplesufferingfromdiabetesandobesitycontinuetorise.

For more information related to the impact of selective food and non-alcoholicbeveragestaxes,pleaseclickthislink.


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THAILAND1. Currentregime

a. ExcisetaxThailandorganizesitsexcisetaxeswithinfourmajorcategoriestoaddressconsiderations

forincomeredistribution(luxurygoodsandservices),health,environment,andmorality.Thailandimposesexcise taxesoncertainnon-alcoholicbeverages includingsodawater, softdrinks,andunfermentedvegetableorfruitjuices,asshowninthetablebelow.Thailandusesbothadvaloremandspecificexcisetaxes.Itapplieswhicheverformishigher,whetheritbeadvaloremorspecificcharges.TheexcisetaxsystemhasbeenadjustedtocomplementtheVATsystem.Forproductssubjecttobothindirecttaxes,theVATiscollectedbytheRevenueDepartmentandtheexcisetaxiscollectedbytheExciseDepartment.

From2007to2015,thegovernment’srevenuefromexcisetaxationwasstable,risingfrom16percentto20percent.In2015,Thailand’srevenuefromexcisetaxeswas$12.57billion.3Theexciserevenuefromnon-alcoholicbeveragesincreasedby21percent,from$416millionto$504millionbetween2011and2015.4Ingeneral,Thailandhassevendifferentexciseactsincludingthefollowing:theExciseTaxAct,thePlayingCardsAct,theLiquorAct,theTobaccoAct,theExciseTaxCodeAct,theExciseTaxAllocationAct,andtheLiquorTaxAllocationAct.

b. VATThailandhasappliedVATsince1992.Previously,ThailandusedBusinessTaxestofulfilthe

samepurpose.Currentlythecountryimposesa7percentVAT.However,thisisatemporaryratethatwasdeductedfromthestandardrateof10percent.ThistaxdeductionwasintroducedbyaspecialroyaldecreeandwillremainvaliduntilSeptember30,2016.Inaddition,somegoodsandservicesareexemptedsuchasbasicgroceries,education,healthcare,andthesaleofrealestate.

3http://www.imf.org/external/np/seminars/eng/2016/asiatax/pdf/ss10.pdf4Ibid.

CategoriesCeilingRate EffectiveRateAd Valorem(%)

Specific Ad Valorem(%)

Specific

1. Sodawater 25 0.77baht/440c.c. 25 0.77baht/440c.c.2. Softdrink 20 0.45baht/440c.c. 20 0.37baht/440c.c.3. Unfermentedvegetableorfruitjuicesa. Ingeneral 20 0.45baht/440c.c. 20 0.37baht/440c.c.b. When juice content is

compiled with theDepartmentRegulation

20 0.45baht/440c.c. Exempt Exempt

Tax structure of non-alcoholic beverages


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Therearesomeother indirecttaxes inThailandincludingspecificbusinesstax,customsduty,stampduty,houseandlandtax,localmaintenancetax,andsignboardtax.Thailandimposesataxonsignboardsthatshownamesorbusinesssymbolsandadvertisements.Thesignboardtaxisratedbythetaxofficerbasedonsignboardsizeandtypeofdisplay;around3Bahtto40Bahtper500squarecentimeters.

EffectivesinceJanuary2015,theGovernmentofThailandrequiresadditionalcontentontax invoices,VATcreditanddebitnotes,andVATreports.Theadditionalrequirements includeprovisionsforVAT-registeredcustomer’staxidentificationnumbersaswellasthoseofregisteredbusiness’s suppliers and customers. A business providing goods and services beyond THB 1.8millionannuallyisrequiredtoregisterforVAT.

2. Governmentproposedtaxchanges

a. ExcisetaxThailand consumes the twelfth greatest amount of sugar in theworld and the second

greatestamountofsugarintheASEANregion.InApril2016,theNRSA,anationalcommitteeonhealthandenvironmentalreform,proposedasugartaxtothecabinettoimprovepublichealthbyreducingsugarconsumption.Theproposalproposesasugartaxwithtwocategories:first,a20percenttaxonbeveragesthatcontain6to10gramsofsugarper100ml.;second,a25percenttax on beverages with more than 10 grams of sugar per 100 ml. These beverages includecarbonateddrinks,greentea,coffee,energydrinks,sourmilk,soymilk,andjuices.

Conversely, the Thai Beverage Industry Association suggests that the governmentreconsidertheNRSA’ssugartaxproposal,whichisbeingreviewedbytheCabinet.ThePresidentof the Thai Industry Association, Veera Akaraputhiporn, demands justice and fairness for thebeverageindustryandtheassociationrequestsaccesstothelegislativeprocess.

Shouldthesugartaxpass,thepricesofnon-alcoholicbeveragesinThailandwillincreasebyaround20to25percentandthegovernmentrevenuewillrisebymorethanTHB10billion($285million)annually.5

b. VAT

ThegovernmentofThailandissuedRoyalDecreeNo.592onOctober1,2015toextendthecurrentVATrateof7percent—downfromthenormalrateof10percent—untilSeptember30, 2016. The reduction of the VAT rate from 10 to 7 percent was initially valid only untilSeptember30,2015.TheVATratescheduledtoreturnto10percentafterSeptember20,2016,unlessanewroyaldecreeisissued.

Inaddition,theIMFrecentlysuggestedthattheGovernmentofThailandtoraiseitsVATratebackto10percent,whichthecurrentrateis7percent,sinceThailand’seconomygraduallybecomeshealthierandinflationdeclinedafteraninternalpoliticaluncertainty.

InApril 2016,Director SumaleeSatitchaichareon,of theTaxPolicyBureauFiscalPolicyOffice,statedthatThailandplanstoconductexcisetaxreformsbyrevisingexcisabletypeofgoodsandservices,reevaluatingthefivemaintaxablegoods(includingbeverages,alcoholicbeverages,tobacco, petrol and petroleum products, and automobiles), and reviewing current rules andregulations.

5http://www.bangkokpost.com/learning/work/950029/sugar-tax-for-public-health-soft-drinks-20-25-price-rise


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3. Stakeholderprofilesa. Leadership

Thailand is a constitutional monarchy where the Prime Minister serves as head ofgovernmentandamonarchisheadofstate.ThePrimeMinisterofThailandisPrayutChan-o-chawhohasheldtheofficesinceAugust24,2014.HeisalsothechairoftheCabinet.Thailand’sprimeminister will hold two four-year terms in the government. The next general elections will beconductedin2017.

PrimeMinisterPrayutChan-o-cha

In2005,ThailandexperiencedpoliticalandcivilturmoilasthethepreviousPrimeMinister,

ThaksinShinawatrawasousted.TheprotestresumedwhenShinawatra’ssister,Yingluck,wonthethePrimeMinistercontestin2011.FromNovember2013toMay2014,anti-governmentprotestsreoccurred,whichcreatedpoliticalinstabilityinthecountry.

However,boththeThaiadministrationandThaipoliticalpartiesgreatlysupporttheprivatesector.TheIMFreportsthat,“TheThaieconomyrecoveredin2015afteraslowdowninducedbypoliticaluncertainty.Outputgrewby2.8percent,whileheadlineinflationdroppedto-0.9percent,undershootingtheBOT’stargetof2.5±1.5percent,mostlyduetoa fall inenergyprices.”6 Insummary,Thailand’spoliticalinstabilitydoesnotsignificantlythreatendailybusinessoperations.

b. Ministry

The Ministry of Finance is responsible for fiscal policy, financial systems policy, andeconomicpolicy,anditsupervisespublicfinances,taxation,thetreasury,governmentproperty,andtheoperationofstateenterprises.TheMinisterofFinanceisApisakTantivarawong.UndertheMOF,theRevenueDepartment,theExciseDepartment,andtheCustomsDepartmentarethegroupsresponsibleformanagingThailand’srevenueandtaxationsystem.

6https://www.imf.org/external/np/sec/pr/2016/pr16141.htm


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c. DepartmentsThe Customs Department is responsible for collecting income from import and export

taxes,duties,andfees.TheRevenueDepartmentworkstogetherwiththeCustomsDepartmentforabouthalfofalltaxcollectionsinThailand.Inaddition,boththeRevenueDepartmentandtheCustomsDepartmentreporttotheMinistryofFinance.

The Excise Department is responsible for non-alcoholic beverage taxation policy andadministration.AnyexcisetaxreformfromthePermanentSecretaryandMinistryofFinancetotheCabinet ismanagedby theExciseDepartment, including those for foodandnon-alcoholicbeverages.


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MALAYSIA1. Currentregime

a. ExcisetaxMalaysiacurrentlydoesnotlevyexcisetaxesonanyfoodornon-alcoholicbeverages.Ingeneral,Malaysiausesbothadvaloremandspecificbasis.Excisedutiesareleviedona

widerangeofgoodsproducedorimportedintothecountry,includingspirits,beersandstouts,whisky,gin,cigarettescontaining tobacco,motorvehicles,motorcycles,andplayingcards.Theexcisetaxrateforspiritsisquitehigh,ataroundMYR0.1perliter,or15percentofthevalueofthebeverages.

b. GSTBeginningonApril1,2015,MalaysiaimposesaGSTatarateof6percent,substitutingfor

sales and service taxes. Businesseswith annual sales turnover exceedingMYR500,000 shouldregisterforGST.ItisestimatedthattheGSTwouldincreasethegovernment’srevenuebyMYR39billionin2016.However,therevenueispartlyoff-setbyincreasedBR1M,thegovernment’scashassistanceschemefor low-incomehouseholds;paymentstotalingMYR5.9billionareaimedatimprovingdomesticconsumptionandassistinglowerincomehousehold.7

Basic foods are zero-rated supplies, including live animals, animal products, vegetableproducts,andsomepreparedfoods.Toanextent,theGovernmentofMalaysiaaimstostimulateitsagriculturalsector.Ataxdeductionwillbeextendedforanadditionalfiveyearstoinvestorswhoundertakefoodproductionactivitiesandtaxexemptionswillbegrantedtofoodproductioncompaniescarryingoutnewprojectsorexpandingcurrentprojects.Furthermore,certaintypesofagro-foodandagro-based industrieswhichqualify for this incentivehavealsobeenextended.Exemptionsareappliedforthesaleandleaseofinvestmentresidentialproperty(includingland),landforagriculturalpurposes,andlandforthepurposesofburial,playandreligion,andfinancialservices.

SupplierswithanannualtaxableturnoverbeyondMYR500,000shouldregisterforGST.AspecificrequirementforthecontentofGSTinvoicesisthatanyamountexpressedinacurrencyotherthantheRinggitshallbeconvertedtotheRinggit.OtherindirecttaxesinMalaysiaincludecustomsduties,andtaxesonwindfallprofitsandchesssets.

c. Taxincentives:pioneerstatusandinternationaltaxallowanceCompaniesmaybeeligibleforpioneerstatus(PS)orinvestmenttaxallowance(ITA)8ifthey

have engaged in production for no more than 12 months. Appropriate industries includemanufacturing, food processing, agricultural, or other commercial sectors. Below is a detailedexplanationaboutPSandITAincentives. 7http://www.taxand.com/sites/default/files/taxand/documents/malaysian_2016_budget_insights.pdf8http://taxsummaries.pwc.com/uk/taxsummaries/wwts.nsf/ID/Malaysia-Corporate-Tax-credits-and-incentives


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• PSprovidestaxexemptionsfor70percentofstatutoryincomefor5yearsfromproductionday.

• ITAoffers60percentofqualifyingcapitalexpenditure (QCE) incurredwithin5yearsofapprovaldatetobeoffsetagainst70percentofstatutoryincomeforeachYAuntilfullyutilized.YAistheyearcoincidingwiththecalendaryear.Forinstance,YA2016istheyearendingDecember31,2016.

• AcompanywithPSorITAstatusthatintendstoundertakereinvestmentbeforetheexpiryofitsPSorITAstatusmayoptforreinvestmentallowance,provideditsurrendersitsPSorITAstatus.


a. ExcisetaxCurrently, around3.3millionMalaysians suffer fromdiabetes.9 TheMinisterofHealth,

SubramaniamSathasivam,proposedto levyataxonsugar-sweetenedbeverages inJune2015.TheMinisteralsoencouragesrestaurantstoreducetheamountofsugarusedindrinksandtoletconsumersdetermineonhowmuchsugartheyneedtoconsume.

TheDeputyHealthMinister,HilmiYahaya,statedthatthesugar-sweetenedbeveragestaxproposalhasbeenincludedinthegovernment’sNationalPlanofActiononNutritionIIIandpolicyoptionsfortheyears2016to2025.

Conversely,Malaysianconsumergroupsareconcernedthatretailersandfoodoutletswilltakeadvantagebyraisingthepriceofotherfoodstuffsthatarenotincludedinthetax.TheVicePresident of the FederationofMalaysianConsumerAssociations (Fomca), Siti Rahayu Zakaria,suggestedthatifthesugartaxisintroduced,thegovernmentshouldensurethatretailersandfoodoperatorswouldnotincreasethepricesoffoodstuffsthatarenotincludedbysuchtax.Sheaddedthat to reduce sugar consumption, the government should also raise public awareness abouthealthylifestyles.

InOctober2013, thegovernmentofMalaysiaannounced that it stoppedsubsidizingsugarwhichwas subsidized at $0.34 per kg. The decision to cut the subsidy wasmade due to theincreasingnumberofMalaysianslivingwithdiabetes.

In the beginning of 2016, Subramaniam Sathasivam suggested a common food safetycertificationsystemamongtheASEANcountries.ThemainpurposeistoimprovefoodsafetyandthecompetitivenessofASEAN’sfoodexportsintheglobalmarket.

b. GST

MalaysiacurrentlydoesnotproposeanyGSTreforms.Ingeneral,in2016,Malaysia’sBudgetProposalsfocusoneliminatingthenegativeimpacts

ofthecurrenteconomicchallengesfromboththedomesticandinternationalmarkets.Forseveralreasons, the government currently tends to bemore careful inmaking any new financial andeconomicpolicieswhichcouldpotentiallyworsenthegovernment’srevenueincludingcurrentlowoilprices,aweaklocalcurrency,andtheglobaleconomicdownturn,especiallyinChina.Malaysia’srecent tax reform aims to improve the capability, effectiveness, and transparency of taxmanagementinthecountry. 9http://www.idf.org/membership/wp/malaysia


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Malaysiapracticesafederalrepresentativedemocraticconstitutionalmonarchywheretheking is theheadof stateandprimeminister is theheadofgovernment.Theprimeminister isappointedbytheking(AbdulHalimofKedah).

ThePrimeMinisterisDato’SeriMohdNajibbinTunHajiAbdulRazak,orNajibRazak,whohasbeeninofficesinceApril2009.TheKingisAbdulHalimofKedah.ThekingisappointedbytheninesultansoftheMalaysianpeninsularstatesforafive-yearterm.

PrimeMinisterNajibRazak

Malaysiannationalmediaismostlymanagedbythegovernmentandpoliticalparties.TheGovernmentofMalaysiacontrolsprintmediathroughamandatoryofhavingannualpublicationlicensesunderthePrintingandPressesAct.

b. MinistryEffectiveasofSeptember2008,PrimeMinisterNajibRazakalsoservesastheMinisterof

Finance.MalaysiahasasecondMinisterofFinance,currently,JohariAbdulGhani.Additionally,OthmanAzizandLeeCheeLeongaretheDeputyMinistersofFinance.TheMOFisresponsibleforgovernment revenue and expenditure, developing economic policy and designing financiallegislationandregulations.

TheDeputyMinisterofHealth,Dr.HilmiYahaya,recentlyendorsedthesugartax.Hestatedthattheproposalisoneofthestrategiesidentifiedtominimizenon-communicablediseasessuchasobesityanddiabetes.

c. DepartmentsTheSecondDeputyMinisterofFinanceisassistedbyateamofsecretarygenerals,including:

TheDeputySecretary-GeneralofPolicy,theDeputySecretary-GeneralofManagement,andtheDeputySecretary-GeneralofInvestment.


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PHILIPPINES1. Currentregime

a. ExciseTaxThePhilippinescurrentlydoesnotlevyexcisetaxesonanyfoodornon-alcoholicbeverages

manufacturedinthecountry.Ingeneral,thePhilippinesimposesspecificandadvaloremtaxesoncertain goods, including alcoholic beverages, tobacco products, petroleum products, mineralproducts,automobiles,andnon-essentialgoodssuchasjewelry,perfumes,andyachts.

b. VATThePhilippineshasusedVATsince1988.ThePhilippinesimposesa12percentVATforany

transaction goods and services including the sale, barter, and importation of goods into thecountry,whetherornotinthecourseoftradeorbusiness.

Zero-ratedVATappliestoexportsales,foreigncurrencydenominatedsales,salestoanyentities exempt under special laws or international agreements, sales of services rendered topersonsengagedinbusinessconductedoutsideofthecountryortoanon-residentindividualnotengagedinbusinesswhoisoutsidethePhilippineswhentheservicesareperformed.

Exempttransactionsincludecertainresidentialsalesorleases,educationalservices,andemploymentbymultinationalcorporations.Additionally,VATexemptionappliestoanyindividualorentitywithgrosssalesandreceiptsequaltoorlessthanPHP1.9millionperannum.However,thiscategoryofindividualsissubjecttopayingof3percentofgrossquarterlysalesorreceipts.Otherindirecttaxesincludepercentagetaxesandcustomsduties.

c. Highertariffratesonagriculturalproducts

Inordertoprotectitsdomesticgoods,thePhilippinesapplies20to65percenthighertariffrates on particular agricultural products. This applies to imported grains, livestock and meatproducts,sugar,certainvegetables,andcoffee.


a. ExcisetaxThePhilippinesisconsideringasodataxduetostronggrowthindemandforsoftdrinksin

thepastfiveyears.IndonesiaandthePhilippinesaretwocountriesinASEANseriouslyconsideringthe excise tax to tackle the NCD diseases. In its proposal, the Philippines’s House ofRepresentativesconsidersintroducinga10percentexcisetaxonallsugar-sweeteneddrinks.Ifthesugar-sweetenedbeveragesexcisetaxispassed,itwilladdanadditionalPHP30billion,annually,togovernmentrevenue.

Inaddition,theDepartmentofFinanceproposesraisingtheexcisetaxongasoline,dieselandotheroilproducts.TheComprehensiveTaxReformProgram(CTRP),apackageofreformsthataimstoestablishamoreprogressivetaxsysteminPhilippines,proposesaP10perliterpricefor


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gasolineandaP6perliterpricefordieselandotherproducts.Additionally,theexcisetaxratesforoilwillriseby4percentannuallyafterthelaw’sfirstyearofimplementation.

b. VATInMay2016,theDOFproposedaVATrateofa14percent,upfromthecurrentrateofa12

percent, for thenext administration. FormerpresidentBenignoAquino III suggests thatnewlyelectedPresidentRodrigoRoaDutertepushforthepassageofCTRP,whichwouldincreasethepresentVATrate.TheDOFalsorecommendsthatthenewadministrationrevokecertainproductswhicharecurrentlyunderVATexemption,includingrawmaterialsforbiofuels,domesticshippingdevelopment,transportofpassengerbyinternationalcarriers,andelectrictransmission.

3. Stakeholderprofiles

a. LeadershipThePhilippinespracticesapresidential,representative,anddemocraticrepublicwherethe

presidentplaysroleasboththeheadofstateandtheheadofgovernmentwithinamulti-partysystem.ThecurrentPresidentofthePhilippinesisRodrigoRoaDuterte,whowontheelectiononMay9,2016.InthePhilippines,presidentsserveforonesix-yearterm.

PresidentDutertewasofficiallyproclaimedbyajointsessionofthePhilippineCongressonMay 30, 2016. President Duterte is the sixteenth President of the Philippines and the firstMindanoapresident.AstheMayorofDavaoCityforseventerms,totaling22years,hewasoneofthelongest-servingmayorsinthecountry.AccordingtoPresidentDuterte’sspokesperson,PeterLavina,thePresidentplanstopetitionforaconstitutionalamendmentwhichwouldchangethegovernmentintoaparliamentaryandfederalmodel.

PresidentRodrigoRoaDuterte

TheVicePresidentofPhilippinesisLeniRobredo.SheisthesecondwomantoserveasVicePresidentinthePhilippines.Priortothat,sheservedasaRepresentativeofCamarinesSur’sThirdDistrictinthesixteenthCongress.Sheisalawyerandsocialactivist.


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b. SecretaryTheSecretaryofFinanceisCarlosDominguezIII,whowasappointedbyPresidentDuterte.

SecretaryDominguezisaFilipinobusinessmanandformerchiefexecutiveofPhilippineAirlines.TheSecretaryofFinanceisresponsibleformanaginggovernmentrevenue,resourcemobilization,debtmanagement,andfinancemarketdevelopment.

c. Departments

Under the Secretary of Finance, there are several groups directly involved in taxationissues.First, theFiscalPolicyandPlanningOffice is responsible forpreparingstudiesonexcisetaxation, VAT, and tariffs, including drafting tax reform measures. Second, the Research andInformationOfficeisresponsiblefortaxpolicyformulation,legislativeliaisonworkontax,financialandeconomicproposalsandinformationdissemination.Finally,theRevenueOfficeisresponsibleforprocessingapplicationsforexemptionsfrompaymentofdutiesortaxesonimportsbyqualifiedapplicantsandcharteredentities.


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INDONESIA1. Currentregime

a. ExcisetaxIndonesiacurrentlydoesnot levyexcise taxesonany foodsornon-alcoholicbeverages

manufactured in the country. In general, Indonesia imposes unitary excise taxes on particulargoods. The excise tax includes ethyl alcohol, alcoholic drinks, and tobacco products. For ethylalcoholandalcoholicdrinks,theexciseraterangesfromIDR13,000toIDR139,000.TheexcisetaxfortobaccoproductsisbetweenIDR6andIDR110,000perstickorgram.

b. VATIndonesialeviesVATatarateof10percent.Zero-ratedVATisavailablefortheexportof

goodsandcertainservices,exceptforfoodandbeverages.Exemptionsapplytodeliveriesand,or,theimportoftaxablegoodsdesignatedasstrategicgoodsbythegovernmentaswellasparticulargoodsorotherservicesforpurposeofsupportingparticularnationalobjectives.

Abusinesswith annual turnover exceeding IDR4.8billion should register forVAT. It isimportanttonotethat,effectiveonJuly1,2016,alltaxpayersmustuseelectronicinvoicesanduse the Indonesian Rupiah as the currency.Other indirect taxes include sales taxes on luxurygoods,stampduties,andcustomsduties.

c. ElectronicVAT

TheDGTannouncedthatelectronicVATwillbemandatoryforalltaxpayerseffectiveonJuly1,2016.ThispolicyismeanttosimplifytheVATinvoiceadministrationprocessandtoimprovetax compliance within the country. On July 1, 2015, e-invoices were required for corporatetaxpayersregisteredinthe17regionaltaxofficesontheIslandsofJavaandBali.

ExemptionsaremadefromthemandatoryelectronicVATifthesupplyoftaxablegoodsandservicescomefromretailersandtaxpayerswhouseotherdocuments insteadofVAT invoices.Furthermore,theVATinvoicesmustusetheIndonesianRupiahasthecurrency.ForeigncurrencyinvoicesmustbeconvertedusingtheMinistryofFinancerate,asperthedatetheelectronicVATinvoiceismade.


a. ExcisetaxesSodataxIndonesia isconsideringasodataxtodecreasesugarconsumption.Themarketsizefor

softdrinks,measuredinretailvalue,doubledbetween2010and2015.However,somearguethatthetaxproposalwouldforcebottlingcompaniestoreconsidertheirlong-terminvestmentinthecountry as the tax would might make production economically inviable given that producersalreadysufferfromthefluctuationsinthelocalcurrencyagainsttheUSdollar.Atthesametime,


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a study conducted by the University of Indonesia states that the proposed tax could raisegovernmentrevenuebyIDR590billion($42million)annually.10

TheChairmanoftheSoftDrinksIndustryAssociation,TriyonoPrijosoesilo,saidthatthesodataxcouldcreatemassivejoblossesandcauseonly limitedpositivehealthimpactsassoftdrinkconsumptioniscurrentlyrelativelylowinthecountry.Headdedthat,“Sweetenedbeveragesonlyaccountfor6.5percentofthetotalcaloriesconsumedbyresidentsofbigcitiesinIndonesia.”Addaconcludingsentence.

PlastictaxIndonesiaistheworld’ssecondlargestwasteproducer,followingChina.Asaresult,the

GovernmentofIndonesiaisconsideringlevyingataxonplasticbottlesandpackaginginordertoreduce plastic production and consumption. In February 2016, the Government introduced achargeonplasticbagsin22citiesacrossthearchipelagoforasix-monthtrial.ThegovernmentplanstoimposeexcisetaxonplasticbottlesandpackagingatminimumIDR200($0.02).11IftheproposedtaxisapprovedbytheHouseofRepresentatives(DPR),theintroductionofexcisetaxwould takeplace at the endof 2016. Such an excise taxwouldprimarily affect three sectors,includingthefoodandbeveragesector,thepackagingsector,andpetrochemicals.

b. VAT

IndonesiacurrentlydoesnotproposeanyVATreform.


Indonesia is apresidential, representativedemocratic republicwherepresident is bothheadofstateandheadofgovernment. In Indonesia,presidentsmayserveuptotwofive-yearterms.InIndonesia’selectoralsystem,thewinningpresidentandvicepresidentareselectedbypopularvote.

JokoWidodo,popularlyknownasJokowi,isthecurrentPresidentofIndonesia,havingheldtheofficesinceOctober2014.Previously,heservedasGovernorofJakartafrom2012to2014andMayorofSurakarta,CentralJava,from2005to2012.Indonesia’scurrenttoppriorityistoimproveits economic and political cooperation in the international stage, especially with Westerneconomies.ThecountryiscontinuouslystrengtheningitsrelationshipwithmembercountriesofASEAN,theEastAsiaSummit,UN,WTOandOPEC.

10http://www.foodnavigator-asia.com/Policy/Soda-tax-could-cost-120-000-Indonesian-jobs11http://www.indonesia-investments.com/id/news/todays-headlines/indonesia-s-plan-to-impose-excise-tax-on-plastic-packaging-meets-resistance/item6741


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PresidentJokowi

b. Ministry

Indonesia’sMinistryofFinanceisresponsibleforformulating,andimplementingpoliciesin terms of budgeting, taxes, customs, treasury, state asset management, fiscal balance, andbudgetfinancingandriskmanagement.ThecurrentMinisterofFinanceisBambangBrodjonegoro,having served sinceOctober 27, 2014.He is an economist and previously served as aDeputyFinanceMinster,fromOctober2013toOctober2014.

c. DepartmentsUndertheMOF,twogroupsaredirectlyinvolvedintheregulationandadministrationof

allissuesrelatedtothetaxsystem.First,theDirectorateGeneralofTaxischargedwithformulatingand implementing policies in terms of taxes according to legislation. Second, the DirectorateGeneralofCustomsandExciseformulatesandimplementspoliciesintermsofsupervision,lawenforcement,governmentservices,andgovernmentrevenueoptimizationincustomsandexciseaccordingtolegislation.


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VIETNAM1. Currentregime

a. ExcisetaxVietnamcurrentlydoesnot levyexcisetaxesonanyfoodsandnon-alcoholicbeverages

manufactured in thecountry. Ingeneral,Vietnam leviesSpecial SalesTaxes (SST)asa formofexcise tax on theproductionor import of certain goods and theprovisionof certain services.ImportedgoodsaresubjecttoSSTatboththepointofimportandsale,exceptforpetrolproducts.

b. VAT

VietnamimposesVATat10percentontheproduction,trading,andconsumptionoffinalgoodsandservices.Thecountryappliesa5percentVATontheprovisionoffundamentalmaterialsand services including clean water, unprocessed foodstuffs, various agricultural products andservices,sugaranditsbyproducts.

Zero-rated VAT applies to exported goods and services. Effective on January 1, 2015,Vietnamexemptsparticular goods thatwerepreviously subject toat5percentVAT, includingfertilizers,specializedmachineryandequipmentusedforagriculturalproduction,offshorefishingvessels,andfeedforcattle,poultry,andotheranimals.2. Governmentproposedtaxchanges

a. ExcisetaxVietnamisthetenthlargestsugarconsumptioninAsia.Onarelatednote,theViceMinisterof

Health,NguyenThanhLong,mentionedthatthenumberofVietnameselivingwithdiabeteshasdoubledinthepastdecade,toaround5.4percentofthepopulation.

b. VATVietnamcurrentlydoesnotproposeanyVATreforms.Someforeigncompaniesurgethe

GovernmentofVietnam to simplify its tax regulations. They argue that the laws are complex,vague,andtimeconsuming.TheheadoftheMinistryofFinance’sTaxPolicyDepartment,PhamDinhThi, states thatVietnamplans toconduct tax reforms inaway thatwould supportmoredomesticproductionandbusiness,andstrengthentheeconomy’scompetitiveness.

Consequently, the government announced its plans to improve its competitiveness byreforming the tax procedures and regulations outlined under resolution No. 1134/QD-BTC,including increased utilization of electronic based recordkeeping and improved regulation oftransferpricing.

Vietnamplans to raise tax rateson liquor and cigarette consumption and cut ratesonbiofuelconsumption,effectiveonJanuary1,2016.


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In2014,Vietnamplannedtoimposea10percentspecialtaxoncarbonatedsoftdrinks.Nevertheless, theproposalwaswithdrawnbecauseofcommercialpressureanddiscriminatoryissuesasthetaxproposalwouldhavebenefitednon-carbonatedsoftdrinksinthecountry.

3. Stakeholderprofiles

a. LeadershipVietnamisasingle-partysocialistrepublicinSoutheastAsiawherethepresidentservesas

theheadofstateandtheprimeministerservesastheheadofgovernment.TheCommunistPartyofVietnamrunsVietnam’ssinglepoliticalparty.VietnamesepeopleelectalegislaturecalledtheNationalAssemblybydirectvoting.ThePresidentofVietnamiselectedbytheNationalAssembly.

ThecurrentPresidentofVietnamisTranDạiQuang,whohasheldtheofficesinceApril2,2016. In Vietnam, presidents can serve up to three five-year terms and prime ministers arerestrictedtotwofive-yearterms.

PresidentTranDaiQuang

ThePrimeMinisterofVietnamisNguyenXuanPhuc.HewasappointedbythePresidentwithapprovalfromtheNationalAssembly.NguyenXuanPhucistheeighthPrimeMinister,holdingofficesinceApril7,2016.Previously,heservedasaDeputyPrimeMinisterofVietnamfrom2011to2016.

b. Ministry

TheMinistryofFinanceisresponsibleforthefinancesofthestatesofVietnamincludingmanagingnationalbudget,taxrevenue,statesassets,nationalfinancialreservesandthefinancesofstatescorporations.TheMinisterofFinancisDinhTienDungeffectiveonMay24,2013.HeisapoliticianVietnam.

c. Department

Under theMinistry of Finance, the General Department of Taxation is responsible foradvising and assisting the Minister of Finance in managing domestic revenues nationwide,


20

includingtaxes,chargesandfees,andotherstatebudgetrevenues.TheGeneralDepartmentofTaxationisalsochargedwithmanagingtaxationinaccordancewiththelaw.


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Myanmar1. Currentregime

a. ExcisetaxMyanmar,alsoknownasBurma,currentlydoesnotlevyexcisetaxesonanyfoodsornon-

alcoholicbeveragesmanufacturedinthecountry.

b. CommercialtaxesMyanmar imposes commercial taxes on particular goods and services listed in the

CommercialTaxLaw.Myanmar’scommercialtaxraterangesfrom0to8percent,dependingonthenatureoftheproducts.Ingeneral,Myanmarleviesacommercialtaxrateof5percent.Someproductsareexempt,includingbasicfoodandmedicines.

Mostexportgoodsareno longersubject tocommercial taxes,excludingelectricityandcrudeoil.Anypartiesthatproducegoods,provideservices,orimportsgoodsisrequiredtoregisterforthecommercialtax.Inotherwords,thereisnominimumthresholdfortheregistration.OtherindirecttaxesinMyanmarincludestampduties,customsduties,andpropertytax.

c. Specialgoodstax

OnApril1,2016,MyanmarpassedtheUnionTaxLawtointroduceaSpecialGoodsTax(SGT)forcertaingoodsthatareproduced,imported,orexportedtothecountryincludingtobacco,alcoholic products, jewelry, luxury cars, and fuel and natural gas. This tax in addition to thestandardcommercialtax.

The newUnion Tax Law also affects theminimum amount of personal income tax forexemption.IndividualsearninguptoMMK4.8millionarenowexemptfrompayingincometax,whichthepreviousthresholdwasMMK2million.


a. ExcisetaxMyanmarcurrentlydoesnotproposeanyexcisetaxesforfoodsornon-alcoholicbeverages

manufacturedinthecountry.

b. CommercialsugartaxInDecember2015,theMinistryofFinancesubmittedaproposaltoamendtheUnionTax

Lawforthe2016-2017fiscalyear.TheamendmentproposedreplacingthecurrentcommercialtaxtoVAT.


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Under its current constitution,Myanmar is aunitaryparliamentary republic. The latestMyanmargeneralelectionwasconductedonNovember8,2015,withtheNationalLeagueforDemocracywinningasupermajorityofseats.The2015electionwasthefirstopenlycontestedelectionheldsince1990.

ThecurrentPresidentofMyanmarisHtinKyaw,whohasheldtheofficesinceMarch30,2016.Heisthefirstciviliantoholdtheofficesincethe1962coupd’état.

PresidentHtinKyaw

Myanmarpresidentsareallowedtoholdofficeforetwofive-yearterms.PresidentHtin

Kyawhastwovicepresidents.HisfirstVicePresidentisMyintSweandhissecondVicePresidentisHenryVanThio.TheStateCounselorisAungSanSuuKyi.

b. Ministry

TheMinistryof Planning andFinance is ledbyKyawWin. Theministry formulates andimplementseffectivemonetaryandfinancialpoliciesinordertomeetpolitical,economic,socialandotherdevelopmentobjectiveslaiddownbytheState.

c. Departments

The Ministry of Finance has several departments that manage government revenue,including the Customs Department and the Internal Revenue Department. The CustomsDepartment focusses on improving trade facilitation by simplifying customs procedures andensuring proper collection of customs duties and taxes. The Internal Revenue Department isprimarily responsible for collecting four types of taxes and duties, including income taxes,commercialtaxes,stampdutiesandStatelotterytaxes.


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SINGAPORE1. Currentregime

a. ExcisetaxSingapore currently doesnot levy excise taxeson any foodornon-alcoholic beverages

manufactured in the country. In general,most of the goods imported into Singapore are notsubject toexciseduties, except for intoxicating liquors, tobaccoproducts,motor vehicles, andpetroleumproducts.

b. GST

SingaporeimposesGSTatarateof7percent.Zero-ratedGSTappliestotheexportofgoodsfromthecountry.Any individualshouldregisterforGSTwhentaxableturnoverexceedsSGD1million($737thousand)ayear.Also,forapersonwhoiscurrentlymakingtaxablesuppliesandtheannualtaxableturnoverisexpectedtobemorethanSGD1million($737thousand)inthenext12months.Other indirect taxes includecustomsduties, stampduties,proper taxes, casino taxes,bettingadsweepstakes,andprivatelotteryduties.

2. Proposedtaxchangesbygovernment

a. ExcisetaxSingaporeisnotcurrentlyproposinganyexcisetaxesonfoodsornon-alcoholicbeverages

manufactured in the country. In general, the number of Singaporeans with heart failure hasincreasedinthepastfewyears.AstudyfromtheNationalHeartCentreSingaporedisclosedthatSingaporeans experience heart failure at the average age of 61, about 10 years earlier thanAmericansandEuropeans.

Singapore is currently Asia’s second most obese country, after Malaysia. The Minister ofHealth,GanKimYong,planstoinvestSGD1billion($737million)annuallytoaddresstheproblem,andtoraisetoSGD2.5billion($1.8billion)by2050tocombatthispandemic.12Thecountrymightlevy a excise tax on sugary beverages to reduce the growing obesity and diabetes problems.However, the Government believes that raising public awareness and education are moreeffectivethanimposingspecialtaxesalone.

b. GSTInJanuary2016,theMinistryofFinanceproposedtheGSTTaxBill2016(Amendment)to

improve Singapore’s tax and banking systems. The Bill also proposed an extension for the 0percentGSTrateonspecificsuppliesrelatedtoaircraftbeyondwhatiscurrentlycovered.

12http://www.businesstimes.com.sg/opinion/food-economics-will-decide-war-on-diabetes


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Singaporepracticesaformofparliamentaryrepresentativedemocraticrepublicwherethepresidentistheheadofstateandtheprimeministeristheheadofgovernment,inamulti-partysystem.ThelatestSingaporeangeneralelectionwasheldonSeptember11,2015inordertoformSingapore'sParliament.

LeeHsien Loong is thePrimeMinisterof Singapore,havingheld theoffice since2004.TherearenotermlimitsforSingapore’sprimeministers.PrimeMinisterLessHsienLoongistheeldestsonoftheSingapore’sfirstPrimeMinister,LeeKuanYew.

PrimeMinisterLeeHsienLoong

ThePresidentofSingaporeisTonyTanKengYam,whohasheldtheofficesinceSeptember1,2011.HeistheseventhPresidentofSingapore.Previously,PresidentTonyTanKengYamservedasaCoordinatingMinisterforSecurityandDefensefrom2003to2005andasaDeputyPrimeMinisterfrom1993to2005.

b. MinistryTheMinistryofFinancefocussesonstrengtheningrelationshipsthroughcollaborationwith

industry tomake the countryaworld-class financial andbusinesshub.HengSweeKeat is thecurrentMinisterofFinance,havingheldtheofficesinceOctober1,2015.However,onMay12,2016,HengSweeKeatcollapsedfromastroke.PrimeMinisterLeeHsienLoongappointedDeputyPrimeMinisterTharmanShanmugaratnamtomanagehisduties.

c. Departments

TheMinister of Finance has two departments that design Singapore’s revenue policy.TherearetheFiscalPolicy(FP)DirectorateandtheTaxPolicy(TP)Directorate.WhilethemainresponsibilityoftheFPDirectorateistocreateanoverallfiscalstrategyandtoimplementafiscalstance,theTPDirectoratemainlyfocusestodesigningtaxpoliciestomeetSingapore’slongtermfiscalneedsandtopromoteeconomicandsocialobjectives.


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CAMBODIA1. Currentregime

a. ExcisetaxCambodiacurrentlydoesnot levyexcisetaxesonanyfoodsornon-alcoholicbeverages

manufacturedinthecountry.However,CambodiaappliesSpecificTaxesoncertainMerchandiseand Services (STMS) as a form of excise tax applied to imported goods and the provision ofservices.Productssubjectedtothespecifictaxaresoftdrinks,alcoholicproducts,andbeer,at20percent.13Othergoodssubjecttothespecifictaxincludecigarettes,at15percent.Servicesincludeentertainmentservicesandairtransportofpassengersat10percent,andtelephoneservicesat3percent.Localtaxpayersareresponsibleforpayingthistaxtothetaxadministrationbythe15thofthemonthfollowingthemonththatthesuppliesareproduced.

b. VATCambodiaimposesVATatarateof10percent.Exemptionsareappliedtosuppliesofwater

forpublicconsumptionandelectricityandnon-profitactivitiesinthepublicinterestasrecognizedbytheMinistryofEconomyandFinance.

It ismandatoryforabusinesstoregisterforVATif itmeetsat leastoneofthesefollowingcriteria:

• Alltypesofcorporations,importer-exporters,andinvestmententerprises• AnyotherbusinesswithturnoverofgoodssoldgreaterthanKHR125million,orinrespect

toservices,morethanKHR60millionforthepreceding2consecutivemonthsorexpectedinthefollowing3consecutivemonths

• Anybusiness that, at thebeginningof any3 consecutivemonths,has anygovernmentcontractswhichwillproducetaxableturnoverbeyondKHR30million.

InCambodia,VATinvoicesarerequiredtobeissuedinsequentialorderandtheyshouldbein

Khmer languagewithEnglishasasecondary language, if required.Other indirecttaxes includeaccommodationtaxes,specifictaxesonparticularmerchandiseandservices,andataxonpubliclighting.2. Governmentproposedtaxchanges

a. ExcisetaxCambodiaisnotcurrentlyproposingexcisetaxesforanyfoodsornon-alcoholicbeverages

manufacturedinthecountry.

13http://www.tax.gov.kh/en/bgoods.php


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b. VATCambodiacurrentlydoesnotproposeanyVATreform.


Cambodiapracticesaconstitutionalmonarchywhere theprimeminister is theheadofgovernmentandamonarchistheheadofstate.Cambodia’sprimeministerhasnotermlimits.

The current Prime Minister of Cambodia is Hun Sen, who has held the office sinceNovember 30, 1998. This makes him the longest serving PrimeMinister of Cambodia. PrimeMinisterHunSenisthe34thPrimeMinisterofCambodia.

PrimeMinisterHunSen

NorodomSihamonihasbeentheKingofCambodiasinceOctober14,2004.Heistheeldest

sonofNorodomSihanouk.TheMonachofCambodiaisselectedbytheRoyalCounciloftheThroneofCambodia,consistingofanine-membercouncil.

b. Ministry

TheMinisterofEconomyandFinanceisAunPornMonirothwhohasheldtheofficesinceSeptember2013.HeisalsotheEconomicAdvisortoPrimeMinisterHunSen.InDecember2015,AunPornMoniroth stated thatCambodiawould increases itsexpendituresby16.5percent in2016. The new expenditures would be used to improve the quality of infrastructure, water,electricity.Thegovernmentalsoaimstoraiseitsrevenueby2percentofGDP,comparedto2015.

c. Departments

Under theMinistry of Economyand Finance, theGeneralDepartmentof Customs andExcise and the General Department of Taxation are responsible for designing tax policy andmanagingitsadministration.TheDepartmentofCustomsandExciseisresponsibleforcollectingtaxesonimportsandexports.


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LaosPDR1. Currentregime

a. ExcisetaxLaosimposesexcisedutiesoncarbonateddrinksandinvigoratingdrinks,atarangebetween

5and25percent.Ingeneral,excisetaxesareleviedonparticularproductsatratesrangingfrom5percentto90percent.Forinstance,fuelistaxedfrom5percentto25percent,alcoholistaxedfrom50to70percent,tobaccoistaxedat60percent,andcosmeticsaretaxedat20percent.

b. VAT

Laosleviesa10percentVATforbothgoodsandservicesproducedorimportedintothecountry.Zero-ratedVATappliestoexportedgoodsandservices.Exemptionsareappliedtocropseedsandanimals,certainimportsrelatedtoairtransport,specifiedfinancialservicesoperations,andcertainvehiclesforspecificpurposes.

Abusinesswithaminimumannualbusiness turnoverof LAK400million is required toregisterforVAT.Otherindirecttaxesincludeexcisetaxes,customsdutiesandstampduties.

c. Specialtaxincentives

Under Laos’ Law on Investment and Promotion, the Government offers special taxincentivesforinvestorsinthecountry,includingthefollowing:

• taxratereductionsforcompanieswithinvestmentagreementswiththegovernment;• investment incentives for particular investments for projects to promote specific

sectorsorlocatedinparticularlocations;• if a foreignenterprise is grantedan initial taxexemption for two to four yearsand

sufferslossesinthatperiod,itmaybepermittedtocarrythelossesforwardandthelossesmay thenbededucted from taxes leviedonprofits in thenext year, carriedforwardupto3years;

• rawmaterials and intermediate items that are imported in order to obtain importsubstitutionareeligibleforspecialdutyreductions.


a. ExcisetaxLaos does not currently propose levying excise taxes for any foods or non-alcoholic

beveragesmanufacturedinthecountry.

b. VATLaoscurrentlydoesnotproposeanyVATreform.


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Laoshasaone-partysocialistrepublicthatiscalledtheLaoPeople’sRevolutionaryParty(LPRP).Thenine-memberPolitburooftheLPRPandthe49-memberCentralCommitteecreategovernmentpoliciesinthecountry.

ThePrimeMinisterofLaosisThonglounSisoulith,whohasheldtheofficesinceApril20,2016.PriortobecomethePrimeMinister,ThonglounSisoulithservedasaDeputyPrimeMinisterandMinisterofForeignAffairs.PrimeMinistersofLaoseachserveonefive-yearterm.

PrimeMinisterThonglounSisoulith

ThecurrentPresidentofLaosisBounnhangVorachith,whoistheheadofstateandthe

GeneralSecretaryofLPRP.PresidentBounnhangVorachithhasheldtheofficesinceApril20,2016.

b. MinistryTheMinisterofFinanceisSomdyDouangdy,whohasheldtheofficesinceApril19,2016.

He previously served as the Minister of Planning and Investment. In this capacity he wasresponsibleforprovidinginformationrelatedtotheinvestmentprocessinLaos.

c. Departments

UndertheMinistryofFinance,theTaxDepartmentandCustomsandExciseDepartmentareresponsibleformanagingtaxpolicyandadministration.


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BRUNEIDARUSSALAM1. Currentregime

a. ExcisetaxBrunei Darussalam currently does not levy excise taxes for any foods or non-alcoholic

beveragesmanufacturedinthecountry.

b. VATBruneiDarussalamdoesnotcurrentlyimposeVATorequivalentconsumptionbasedtaxes.

Ingeneral,thecountryleviesseveraltypesofindirecttaxes,includingcapitalduties,payrolltaxes,realpropertytaxes,socialsecurity,stampduties,andtransfertaxes.Inaddition,anotherindirecttaxcoversremunerationpaidtoanonresidentdirectorormanagementfeespaidtoanonresident.Thesearesubjecttoa20percentwithholdingtax.

2. Proposedtaxchangesbygovernment

a. ExcisetaxIt isestimatedthatone-thirdofyoungpeopleinBruneiDarussalamareoverweightand

around17percentofthemareobese.TheMinisterofHealth,Dr.ZulkarnainHanafi,iscurrentlyconsideringimposingataxonfoodproductsandbeveragesthatcontainhighamountsofsugarand,or,ataxonfastfoodchains.However,Dr.Hanafimentionedthatthispolicywouldnotcutthesugarsubsidyinthecountry.

b. VAT

BruneiDarussalamcurrentlydoesnotproposeanyVATreform.


BruneiDarussalampracticesanabsolutemonarchywheretheSultanofBruneiDarussalamisboththeheadofstateandtheheadofgovernment.TheheadofstateofBruneiDarussalamwithfullexecutiveauthorityisSultanHajiHassanalBolkiahMu'izzaddinWaddaulah.Heisthe29thandcurrentSultanofBruneiDarussalam,sinceOctober1967.

b. Ministry

Sultan Haji Hassanal Bolkiah also plays a role as the Minister of Finance, Minister ofDefense,andMinisterofForeignAffairsandTrade.TheMinisterofFinanceIIisHajiAbdulRahmanbinHajiIbrahim.TheMinistryofFinanceisresponsibleforrevenuepolicyanditsadministration.However,anysignificantfinancialpoliciesaredesignedbytheSultanandhisCouncilofCabinetMinisters.


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SultanHajiHassanalBolkiah

TheMinistryofBruneiDarussalamaimstoimprovethecountry’sbusinessfacilitationand

policiesinawaythatpromotesbusinessandinvestments.Thegovernmentwillalsostrengthenfinancialmanagement throughdisciplineandprudentspending,especiallywithcurrent lowoilpricesasthecountryrelieshighlyonitsoilandgasresources.

c. Departments

Under the Ministry of Finance, the Revenue Division is the agency responsible forformulatingtaxpoliciesandadministrationandincometaxcollection.


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