Cigarettes, alcoholic drinks to cost more

By WICHIT CHAITRONG 
THE SUNDAY NATION

 

 

New excise tax rates come into effect; department targets Bt12 billion revenue

 

NEW EXCISE taxes have affected prices across industries ranging from beverages to cars, with the new tax regime causing higher prices for some items but lower prices for others.

 

The Excise Department ex-|pects to collect additional tax |revenue of Bt12 billion from the changes.

 

 

New excise taxes will cause “moderate” rises in the prices of alcoholic beverages, sugary drinks and cigarettes, the director general of the Excise Department, Somchai Poolsavasdi, said yesterday. It may also cause a small rise in prices for imported cars and cars manufactured in customs-free zones.

 

 Somchai told a press conference that the new taxes rates would be effective immediately. The price of many items would not increase and some items would be taxed less, he said. Some producers might absorb rising costs for products facing high market competition, he said, but in any case consumers would not pay much more for these products.

 

The new excise system is based on the retail price, while the previous system was based on ex-factory or CIF (cost, insurance and freight) prices.

 

“The new tax system will be more transparent and just as it is based on only the suggested retail price proposed by manufacturers,” said Somchai.

 

The details are as following: The tax per bottle of wine priced above Bt1,000 will be Bt110 upwards, depending on the price. The tax on locally made wine will decrease by Bt25 per bottle.

 

The tax on a can of beer will be Bt0.50 higher, and for bottles of beer it will be Bt2.66 more. For higher-priced beer, the tax will decrease by between Bt0.99 and Bt2.

 

White spirit will be taxed more |by Bt0.84 to Bt3.49 per bottle. For other kinds of locally produced |spirit, the additional tax will be |Bt8 per bottle for drinks with 28 per cent alcohol content and Bt30 for drinks with 40 per cent alcohol content.

 

The tax on other imported spirits, such as Johnnie Walker Red and Blue Label Scotch whisky, will be a little less, from Bt3 to Bt26 depending on alcohol content. The variance is due to a tax hike on higher alcohol content.

 

“In the future, the tax will increase based on alcohol content, with high levels of alcohol subject to higher taxes,” said Somchai.

 

For low-cost cigarette brands priced at Bt60 or lower, the tax will add Bt4 to Bt15 more per pack, while higher-priced cigarettes will be taxed at Bt2-10 more per pack.

 

“After two years, the tax rates of cigarettes would be the same at 40 per cent of its price and Bt1.2 per roll,” said Somchai.

 

Sugary drinks are also subject to higher taxes.

 

Soft drink taxes will be Bt0.13 to Bt 0.50 per bottle, but sugar-free soft drinks will be taxed less by Bt0.28 to Bt0.36 per bottle. Energy drinks will be taxed more, ranging from Bt0.32 to Bt0.90 per can or bottle. Green tea will be taxed Bt1.13 to Bt2.05 more per bottle, and the tax on coffee will be Bt1.35 more per bottle or can.

 

After two years, taxes on sugary drinks will rise to reflect the proportion of sugar they contain.

 

Some cars also have higher |taxes.

 

While the overall tax rate |has not increased, imported cars |and those manufactured in the country’s free-tax zone will see “a small rise”, said Somchai. The latter increase reflects the switch from a tax based on CIF prices to one based on retail prices.

 

Somchai had been lobbied by manufacturers worried over price rises under the new tax system.

 

Tax rates on cars are between 20 and 40 per cent, and taxes on pickup passenger vehicles (PPV), “space cabs” and pickups are between 2.5 and 40 per cent. The tax on hybrid cars is 8 per cent, and half that if manufacturers get special tax privileges from the Board of Investment (BOI).

 

The tax on electric vehicles (EV) and fuel cells is also 8 per cent, down from 10 per cent previously. EVs with BOI investment privileges will be taxed at only 2 per cent.

 

The Excise Department forecasts that the new excise tax will increase its annual revenue by additional Bt12 billion, Somchai said.

 

Source: http://www.nationmultimedia.com/detail/national/30326883

 

 

-- © Copyright The Nation 2017-09-17

Thailand sets new excise tax on alcohol, cigarettes

Reuters Staff

 

BANGKOK, Sept 16 (Reuters) - Thailand’s new excise tax law will see higher prices of certain goods, including some alcoholic beverages and cigarettes, and should generate about 12 billion baht ($360 million) in tax revenue, a senior government official said on Saturday.

 

The law, effective on Saturday, is aimed at making tax collection more transparent and should not have a big impact on overall product prices, Somchai Poolsavasdi, director-general of the Thailand’s Excise Department, told a briefing.

 

“Overall, this will increase tax revenue by 2 percent,” he said.

 

The tax on alcohol will increase by up to 30 baht per bottle, while beer will rise by 0.50 baht per can and 2.66 baht per bottle, the official said.

 

The tax on imported wine will rise at least 110 baht per bottle, and cigarettes will increase by 2 to 15 baht per pack, the official said.

 

 

-- © Copyright Reuters 2017-09-17

50 satang on a beer isn't so bad. Given the horror story prices I have seen quoted in the last couple of days, I am quite relieved. Lot of people been getting worked up over what has turned out to be next to nothing.

 

7 minutes ago, rooster59 said:

The tax on a can of beer will be Bt0.50 higher, and for bottles of beer it will be Bt2.66 more. For higher-priced beer, the tax will decrease by between Bt0.99 and Bt2.

From the previous link....so beware of any shop doubling their prices. I think price increases are partly due to be measured on baht / unit of pure alcohol (not the total about of the beverage). 

10 minutes ago, rooster59 said:

The details are as following: The tax per bottle of wine priced above Bt1,000 will be Bt110 upwards, depending on the price. The tax on locally made wine will decrease by Bt25 per bottle

Ah yes.........have to ensure that the extremely wealthy and influential/well connected owner of a certain winery here can benefit from increased sales. After all got to keep his son on the run and buy him a new Ferrari.

16 minutes ago, xylophone said:

Ah yes.........have to ensure that the extremely wealthy and influential/well connected owner of a certain winery here can benefit from increased sales. After all got to keep his son on the run and buy him a new Ferrari.

My thoughts exactly. The increase on wine it's out or proportion with the other changes and this reflects their influence behind the scenes. 

Great, I am back  in Thailand one week and they raise the price of beer,

another nail in the coffin of my Thai plans.

I bought some smokes awhile back in Bangkok. Will their prices also increase?

So predicting sky rocketing tourist numbers  35+ million and large amount of those spend big on bars and booze and thats why so many come, cheap booze.  The government makes billions on sales to tourists so they had better be careful they dont price themselves out of tourism revenue.  

9 minutes ago, placidlake said:

My thoughts exactly. The increase on wine it's out or proportion with the other changes and this reflects their influence behind the scenes. 

Does anyone actually drink thai wine? Its putrid stuff.  Imported wine is so over priced and ridiculous.  I noticed a cheap bottle of aussie wine, riverside landing that retails at $3.50 AUD in australia was retailing in Thailand at 650baht.  They would be buying it at no more than 50 baht a bottle or $2.00 AUD. Riverside landing is putrid but better than thai wine.

I buy a lot of beer for the hash. We drink small bottles of beer. Hopefully the 2.66 on a bottle of beer is not a flat rate on any size!

 

Worth me nipping out this morning and buying a few cases. I guess not as everyone will be out there. 

 

Most stupid part of the increases? Mr politician thinks its a good idea as a sop to public opinion to state that shops are not expected to put prices up until their stock runs out and more importantly businesses can be reported if they are found doing so. I'll bet that nothing will come of such reports, but the politicians have clearly not thought through the consequences of making such statements. Expect there to be an immediate run over today and the next few days on Thailand's beer stocks. No beer available for a couple of weeks thereafter?

 

So on second thoughts I had better get down the bottle/case shops and supermarkets immediately. Get a month or so's family and hash stock in quick! Beer price increases I can handle; beer outtages - no way  :-) 

 

Edit "hash" = Hash House Harriers - the drinkers with a running problem (our drug of choice is beer, not weed)

 

On the surface at least, it appears to me that differentiating the tax between locally produced and imported wine breaks the Free Trade Agreements that Thailand has signed with Australia and New Zealand unless wine from those 2 countries is treated as local for tax purposes.

 

Watch this space.

38 minutes ago, Thechook said:

Does anyone actually drink thai wine? Its putrid stuff

Certainly the Thai wine that I've tasted is.........but this also protects the company/industry that produces wine here, made from imported grape juice with fruit juice added here. 

Big deal I do not drink or smoke

10 minutes ago, Jmcla said:

Big deal I do not drink or smoke

Well as long as you don't drink or smoke I guess the taxes are ok then..

It's for your health peasants!

 

The cheapest sh!t glue up by 0.84 THB

Quality imported wine up by 110 THB

Red Bull's now have large expenses to keep their son off the jail so - 25 THB on their low quality juice

11 minutes ago, Jmcla said:

Big deal I do not drink or smoke

 

Good to know. Now, back to your yoga room and self-realization library. 

5 minutes ago, fforest1 said:

Well as long as you don't drink or smoke I guess the taxes are ok then..

Could be oxygen tomorrow ..

2 hours ago, rooster59 said:

“The new tax system will be more transparent and just as it is based on only the suggested retail price proposed by manufacturers,” said Somchai.

The manufacturers can suggest what they like. Its up to the individual Bars to add on whatever margin they choose.

About as transparent as a brick wall.

 

If its about health why include Green Tea?

How much Green Tea do you need to drink before it kills you?

1 hour ago, rooster59 said:

Somchai told a press conference that the new taxes rates would be effective immediately. The price of many items would not increase and some items would be taxed less, he said

A win-win situation? This guy's growing on me.

12 minutes ago, fforest1 said:

Well as long as you don't drink or smoke I guess the taxes are ok then..

But sugary soft drinks are going up too.

2 hours ago, darksidedog said:

50 satang on a beer isn't so bad. Given the horror story prices I have seen quoted in the last couple of days, I am quite relieved. Lot of people been getting worked up over what has turned out to be next to nothing.

 

I too will start celebrating the good news this lunchtime!

1 hour ago, sirineou said:

Great, I am back  in Thailand one week and they raise the price of beer,

another nail in the coffin of my Thai plans.

It's 50 satang it ain't going to hurt your pocket, it will do if bar owners use it as an excuse to make more money on each bottle.

44 minutes ago, Jmcla said:

Big deal I do not drink or smoke

Non-drinkers

51 minutes ago, Jmcla said:

Big deal I do not drink or smoke

why involve yourself in the thread then?

1 hour ago, sirineou said:

Great, I am back  in Thailand one week and they raise the price of beer,

another nail in the coffin of my Thai plans.

Wow up half a bhatt and your complaining, ok don't come to Thailand we won't miss you 

1 hour ago, SantiSuk said:

Edit "hash" = Hash House Harriers - the drinkers with a running problem (our drug of choice is beer, not weed)

do you have harriettes?

2 hours ago, sirineou said:

Great, I am back  in Thailand one week and they raise the price of beer,

another nail in the coffin of my Thai plans.

it's a conspiracy

3 hours ago, Thechook said:

So predicting sky rocketing tourist numbers  35+ million and large amount of those spend big on bars and booze and thats why so many come, cheap booze.  The government makes billions on sales to tourists so they had better be careful they dont price themselves out of tourism revenue.  

I know of countless Irish people who came to Thailand and could not believe how expensive wine is and that’s BEFORE this latest increase. A bottle of australian cheap wine like Jacob’s Creek is a real supermarket bargain wine in Ireland ( a longway from Australia)  but it is TWICE the price in 7/11 in Thailand. And it is not a good wine. Members of my own family have said they so much enjoy their glass of good wine that they could not contemplate coming back here on holiday. Add to that the ban on e-cigarettes.... well you get the picture. 

2 hours ago, Jmcla said:

Big deal I do not drink or smoke

Me too, it does not prevent my curiosity