Higher sodium levels would face higher tax rates, similar to the structure used for Thailand’s sugar tax introduced in 2017.

Foods prepared and sold on-site, including fast food, would be exempt from the levy.

This tax would likely be rolled out in phases to allow manufacturers time to adjust product formulations. Under the proposal, the highest-sodium products could initially face lower tax rates for at least six years before stricter thresholds take effect.

“The goal is to encourage manufacturers to reformulate their products and gradually reduce sodium content,” said Rachada Wanikakorn, deputy director-general of the Excise Department.

She noted that implementing a salt tax may be more complicated than the sugar levy because sodium has fewer substitutes in food production.

Why the need for such a tax?

The policy proposal comes as Thailand grapples with widespread excessive sodium intake.

A national health survey conducted in 2024 to 2025 found that Thais aged 15 and above consume an average of about 3,650 milligrams of sodium daily — nearly double the World Health Organization’s recommended maximum of 2,000 milligrams.

The study, carried out by Ramathibodi Hospital with the Health Systems Research Institute and the ThaiHealth Foundation, found that about 88% of the population exceeds the recommended daily sodium intake. 

Health authorities warn that excessive sodium intake is contributing to the growing burden of non-communicable diseases in the country, including hypertension, kidney disease and cardiovascular conditions .

The government aims to reduce sodium consumption by 30% by 2030 under its Strategic Approach to Lower Sodium and Salt (SALTS) strategy.

Mixed reactions

But the proposed policy drew cheers and jeers, with supporters saying a tax could push manufacturers to lower sodium levels in processed foods and help reshape dietary habits.

For critics, however, such levies could disproportionately affect lower-income households, which tend to rely more heavily on inexpensive packaged foods. Others note that salty ingredients, including fish sauce, are deeply embedded in Thai cuisine, potentially limiting the effectiveness of the measure.

Similar public health taxes in countries such as Hungary and Colombia have produced mixed results, with debate continuing over their long-term impact on food consumption.

The Philippine economy is expected to withstand a potential 19% US tariff with minimal disruption, says DEPDev Secretary Arsenio Balisacan. He credits the nation’s diversified exports and focus on productivity and infrastructure. Balisacan noted that broad export markets cushion GDP from tariff shocks, while import changes may have a larger effect. He assured that GDP targets remain intact due to strong fundamentals. To sustain growth, Balisacan emphasised the need to diversify exports, boost productivity, and remove barriers for businesses and startups.

Philippines, Israel eye closer economic ties

The growing economic partnership between the Philippines and Israel was highlighted at a July 29 gala attended by Israeli Economy Minister Nir Barkat and DTI Secretary Cristina Roque. Both officials expressed optimism about a potential free trade agreement and deeper cooperation in trade, tourism, and innovation. Barkat proposed reducing tariffs to zero, calling the countries’ economies “complementary.” He also noted untapped tourism potential, citing low Israeli tourist arrivals in the Philippines compared to Thailand, and stressed the need for direct flights to boost travel and people-to-people exchanges. He invited Filipinos, especially Catholic pilgrims, to visit the Holy Land and shared plans to restore biblical sites like the Pool of Siloam in Jerusalem.

IMF raises 2026 growth forecast for the Philippines

The IMF has upgraded its 2026 growth forecast for the Philippines to 5.9% from 5.8%, citing strong economic fundamentals and ongoing reforms. The revised outlook reflects continued confidence in the country’s resilience despite global challenges. For 2025, the IMF maintained its 5.5% growth forecast, aligning with the government’s target range of 5.5% to 6.5%.

Philippines' clean energy transition sees coal decline

Coal-fired power in the Philippines is set to decline by 5.2% in early 2025, the first drop since 2008, signalling a shift toward cleaner energy, according to IEEFA. Despite claims linking the decline to LNG, no new gas-fired capacity was added from 2017 to 2024. In contrast, over 1 GW of solar was installed in 2024, boosted by government-led renewable auctions. The country’s competitive power market also mandates least-cost energy sourcing, further supporting clean energy growth.

Philippines considers raising online gambling tax to over 30%

The Philippine government is reviewing its online gambling framework, with talks underway to tighten regulations, according to Finance Secretary Ralph Recto. While seen as a key revenue source, officials are weighing the risks of higher taxes. Currently, operators contribute 25% of gross gaming revenue to PAGCOR. Proposed reforms may raise this to 30% or more. However, Recto warned that excessive taxation could drive more operators underground, especially with 60% of the sector already unregulated.