Born to fight: excise chief seeks Olympics glory

By WICHIT CHAITRONG 
THE SUNDAY NATION

 

Somchai Poolsavasdi

 

THE NEW excise tax has been praised by many as a great advance in tax reform in Thailand – and Somchai Poolsavasdi is one of the key people behind it.

 

“I’m happy that, after five years of work, the new excise tax has come into effect,” said Somchai, the former director general of the Excise Department, whose retirement begins today.

 

The new tax rates are based on retail prices of products and services, rather than the former based on ex-factory or CIF (cost, insurance and freight) prices.

 

“The new tax system is more transparent,” said Nipon Poapongsakorn, a veteran economist at the Thailand Development Research Institute (TDRI). “The previous system was opaque and open for collusion between tax officials and influential manufacturers.”

 

Somchai does not take all the credit for himself. “Before I was appointed the chief of the department, research had been carried out by academics at Thammasat University,” he said. “I just carried it on.”

 

When dealing with “sin taxes”, the department had to work with people in the public health field, said Somchai.

 

Under the previous excise tax, the price of an alcoholic beverage was given more weight than its alcohol content. The tax ratio was 80:20, monetary value to alcohol content.

 

“Now the ratio has been changed to 45:55, as we are more concerned about higher alcohol levels that do more harm to consumers’ health,” said Somchai.

 

As a higher alcohol content means a higher tax rate, Somchai expects local beer producers to introduce new products that have a lower alcohol content and should do less harm to drinkers’ health. The beer tax rate now is 22 per cent of its price value and Bt430 per litre of alcohol. 

 

Cigarettes are also taxed partly on their volume, at Bt1.20 per roll – the same rate whether it is a cheap or expensive cigarette, as they are both harmful to smokers’ health, he said.

 

Yet, there is also a tax component on the price of the cigarettes: 20 per cent for those priced no more than Bt60 per pack and 40 per cent for the more expensive brands. Some critics have said that this may run counter to World Trade Organisation (WTO) rules.

 

Somchai conceded that the tax rate might favour Thailand Tobacco Monopoly under the supervision of the Finance Ministry and put imported premium-brand cigarettes at disadvantage – but it would only be temporary. “After two years, there will be only one rate,” said Somchai.

 

But he said the current system would not be against WTO rules, since cheap cigarettes from overseas producers could also enjoy the lower tax rate. Some cigarette producers have recently lowered their prices to Bt60 a pack to avoid the extra tax.

 

Somchai said there would not be much impact from the new tax regime on car makers.

 

Luxury cars priced Bt10 million and more might cost an extra Bt100,000, but an average car priced at Bt1 million would only cost Bt1,000 extra.

 

Somchai said the new tax coming into effect on September 16 provided a happy conclusion to his public service career on September 30.

 

But his life would not less active, as he vowed to continue his involvement in the sport of boxing, about which he is passionate.

 

“I was born to fight,” he said. “Had my mother not opposed my choice, by now I could have obtained a world boxing championship title.”

 

Somchai, who is chief of the technical development department of the Amateur Boxing Association of Thailand, vowed to throw his support behind Thai boxers aiming for medals at the next Olympic Games. 

 

“We have hired a qualified and well-known boxing coach from Cuba to train Thai boxers,” he said.

 

Somchai said he fell in love with boxing when he joined the boxing club at Thammasat University while studying for his bachelors degree. This led to him making many friendships, including his boxing mentors.

 

“Poot Lorlek, the well-known Thai boxer, is a good friend of mine,” he added.

 

Source: http://www.nationmultimedia.com/detail/business/30328122

 

 

-- © Copyright The Nation 2017-10-01

 

 

9 minutes ago, rooster59 said:

I was born to fight,” he said. “Had my mother not opposed my choice, by now I could have obtained a world boxing championship title.

Or just maybe......Can anyone else hear the cleaner slowly sweeping up mystic parts from the floor? 

Good excuse, though. One of the best this year.

2 hours ago, rooster59 said:

“I was born to fight,” he said. “Had my mother not opposed my choice, by now I could have obtained a world boxing championship title.”

and i could've been an F1 Champion 2 or 3 times by now; if only for my Ma.

Tax Reform in Thailand sound like another First ! the list is amazing it just keeps getting longer !

Any increase on Lao Kao tax?  The stuff that makes you go blind then gives you terminal liver failure or is that a protected Thai product?

 

14 hours ago, rooster59 said:

When dealing with “sin taxes”, the department had to work with people in the public health field, said Somchai.

 

! I'm guessing these people in the health field specialized in submarines