CIMB: Sugar tax will have minimal financial impact on players
The research house expected that companies such as Nestle (Malaysia) Bhd, Fraser & Neave Holdings, Power Root Bhd, and Berjaya Food Bhd would see effective selling prices of their products increase by 12sen to 20 sen.
PETALING JAYA: The tax on sugary beverages is expected to have a minimal financial impact to the industry, said CIMB Research.
Notably, the implementation of the sugar tax has been postponed by the government for three months to July 1 to give more time to player in the market to prepare.
“The financial impact from the new excise duty is likely to be minimal, as manufacturers can introduce alternate drinks with lower sugar content, lower the sugar content of existing products, and reduce the sizes of existing products to keep prices unchanged,” CIMB said in a report yesterday.
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