Cost of imported wine and spirits set to be slashed in Thailand

[webfact]

Picture: Bangkok Business News

 

The measures to try and encourage a million wealthy foreign visitors to come to Thailand over the next five years are set to have a broader impact for consumers of imported alcohol.

 

The customs department are reportedly going to slash import duty on wine and spirits and cigars maybe by as much as half.

 

Wine drinkers in particular in Thailand have often complained about the cost of foreign imported beverages. 

 

What a 50% reduction in import duty would mean at the till remains to be seen. 

 

Bangkok Business News quoted the director-general of the Customs Department Patchara Anantasin as saying that the changes would be part of the mix to attract foreign investors.

 

This was announced last Tuesday and includes long term visas, tax breaks and easing in property ownership rules. Details can be seen here.

 

Thailand wants to get a million foreigners to invest a trillion baht in five years in a move to kickstart the post-pandemic economy.

 

A bugbear would be the high cost of imported items like wine, spirits and cigars, hence the proposed changes. 

 

Various media outlets are reporting that the changes might only last for five years. But as with condo and land ownership rules this could always be extended. 

 

Changes to the excise tax on cigarettes are also in the offing though both this and slashing of alcohol duty has not pleased everyone.

 

Roengrudee Patanavanich of Ramathibodi Hospital who is a researcher on tobacco control said that the proposals are bad news for groups wanting to stop smoking and the consumption of alcoholic beverages.

 

They would prefer to see steady 4% increases in tax on cigarettes rather than flat rates charges. 

 

The changes to customs duty would also see revision of customs procedures and duty for personal items for arriving and departing passengers. 

 

-- © Copyright  ASEAN NOW 2021-09-20

 

- Whatever you're going through, the Samaritans are here for you

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

[Denim]

1 minute ago, webfact said:

The measures to try and encourage a million wealthy foreign visitors to come to Thailand over the next five years

I think they will have to bring bar fines and a round of golf down as well if this strategy is to work.

[smedly]

6 minutes ago, webfact said:

Roengrudee Patanavanich of Ramathibodi Hospital who is a researcher on tobacco control said that the proposals are bad news for groups wanting to stop smoking and the consumption of alcoholic beverages.

nobody is forcing you to participate - if you don't want to drink then don't 

[smedly]

6 minutes ago, Denim said:

I think they will have to bring bar fines and a round of golf down as well if this strategy is to work.

a round of golf used to be cheap here until foreigners got involved 

[xylophone]

Would love to see the price of wine come down as it is one of the things that I enjoy here, but the prices compared to other countries are criminal!

 

And it may put an end to the practice of adding fruit juice to wine in order to get around tax/excise duty!! 

Edited September 20, 2021 by xylophone

[RotBenz8888]

I doubt the prices in the stores will go anywhere, accept for up. 

Edited September 20, 2021 by RotBenz8888

[Jip99]

1 minute ago, xylophone said:

Would love to see the price of wine come down as it is one of the things that I enjoy here, but the prices compared to other countries are criminal!

+1

[Enzian]

19 minutes ago, smedly said:

nobody is forcing you to participate - if you don't want to drink then don't 

haha.  They are talking about groups wanting to stop OTHER PEOPLE from smoking and drinking, the nanny state knowing what is better for you but stopping short of making it illegal.

Edited September 20, 2021 by Enzian
error

[rbkk]

Aussie wines are looking for a market after being blocked access to China (And I'm guessing France!).

Edited September 20, 2021 by rbkk

[MRToMRT]

Its worse than you think and prices may NOT come down as customs and excise wants to reduce it because importers always undervalue their imports significantly to avoid the current rates.........

 

Duty and Tax Burden for Wine 

Countries	Tariff Rate	Effective Duty and Tax Burden
USA, France, Italy, Chile and other countries under WTO agreement	54%	390.46%
Australia	24%	294.92%
New Zealand	18%	275.81%

 

 

[scubascuba3]

While they are at it reduce the tax on falang imported food

[Enzian]

5 minutes ago, scubascuba3 said:

While they are at it reduce the tax on falang imported food

And put the first families of the country in hardship?

[spidermike007]

I have not been able to find any specific mention of a reduction in the rates of tariffs on imported wines anywhere. They mention imported alcohol, which has a for lower rate than wine. Anyone know anything about wine specifically, in regard to this proposal?

 

If wine was included, it would be monumental, as it would be the kind of sacrifice that is needed to attract the wealthier tourists and ex-pats they keep ranting about. Next, lower luxury taxes. Then, Thailand begins to join the real world, and wealthy people feel like they are not being taken for a ride, and then they start returning, instead of vowing to never come back. In reality wine taxes should be reduced from the ridiculous 300% plus, to around 75%. Income from the industry would likely increase 1000%. 

 

 

[chalawaan]

As my Jewish friend says, a percentage of something is better than 100% of nothing. They may find overall tax revenues increase, if they are sensible enough to reduce the tax to the point it drives wine sales. I have no idea who buys the wine here, as the specialist stores and even the supermarket aisles are barely patronized thanks to stupid taxes, and the dumb dumb dumb time restrictions outside any tourist zones.

Edited September 20, 2021 by chalawaan

[chalawaan]

28 minutes ago, MRToMRT said:

Its worse than you think and prices may NOT come down as customs and excise wants to reduce it because importers always undervalue their imports significantly to avoid the current rates.........

 

Duty and Tax Burden for Wine 

Countries	Tariff Rate	Effective Duty and Tax Burden
USA, France, Italy, Chile and other countries under WTO agreement	54%	390.46%
Australia	24%	294.92%
New Zealand	18%	275.81%

 

 

Clearly there's ripping off at the checkout too, as I've not found midrange new world wines to be anything more than 5-10 baht cheaper than old world wines. The bottom line is they HAVE to decrease the prices, or they're only screwing themselves in the long term, I can and do vote with my shekels, no skin off my nose to buy wine when I go abroad, and just abstain here, so we shall see...

Edited September 20, 2021 by chalawaan

[ezzra]

1 hour ago, webfact said:

try and encourage a million wealthy foreign visitors

Yes, wealthy visitors will travel to Thailand for cheaper wine and cigars, i mean, how desperate those custom guys, and the one that come up with these hare brain plans are?...

[transam]

No mention of Laos beer then.....????

[Jingthing]

33 minutes ago, chalawaan said:

As my Jewish friend says, a percentage of something is better than 100% of nothing. They may find overall tax revenues increase, if they are sensible enough to reduce the tax to the point it drives wine sales. I have no idea who buys the wine here, as the specialist stores and even the supermarket aisles are barely patronized thanks to stupid taxes, and the dumb dumb dumb time restrictions outside any tourist zones.

You're Jewish friend?

Seriously?

What's his name?

Shlomo Imaginary?

Not sure why you felt the need to inject ethnic stereotypes into this topic.

Edited September 20, 2021 by Jingthing

[Henryford]

Do the billionaires queuing up to get into Thailand care about the cost of wine.

[Jingthing]

Just now, Henryford said:

Do the billionaires queuing up to get into Thailand care about the cost of wine.

Hard to say but surely many are wine lovers and just because they're rich doesn't mean they appreciate bring gouged.

[thaitom]

55 minutes ago, scubascuba3 said:

While they are at it reduce the tax on falang imported food

Yes sir !  Cheese !

[scubascuba3]

5 minutes ago, thaitom said:

Yes sir !  Cheese !

Yes and chocolate and butter and Marmite in fact everything

[thaitom]

Just now, scubascuba3 said:

Yes and chocolate and butter and Marmite in fact everything

Yes sir !

[Gandtee]

Oh the irony. Alcohol is not being served in bars and restaurants and they pick this time to reduce the tax on alcohol. The people running Thailand are becoming more unstable every day. How cheap and seedy can you get when attempting to attract so called high end tourists.????

[djayz]

1 hour ago, webfact said:

a million foreigners to invest a trillion baht

Those kinds of people really don't care about the cost of a bottle of wine, do they? 

[Jingthing]

1 minute ago, djayz said:

Those kinds of people really don't care about the cost of a bottle of wine, do they? 

I reckon some do and some don't. I've personally met some massively wealthy people are some of them are surprisingly frugal. They may spend a lot on some things but they still demand good value.

[RichardColeman]

Wonder if China will make them keep 200% on Aussie wine  

[djayz]

1 minute ago, Jingthing said:

I reckon some do and some don't. I've personally met some massively wealthy people are some of them are surprisingly frugal. They may spend a lot on some things but they still demand good value.

It has nothing to do with being frugal. People with that kind of wealth are not going to invest/decide not to invest in a country because of the price of booze. 

[Nojohndoe]

Wine especially has subject to ridiculous applied tax when compared  to spirits but I wonder if the local Winemakers also get some relief from the massive tax they must pay ? There are quite a few of them and increased competition from cheaper imports without some corresponding reduction would seem unfair to a developing industry.

[FritsSikkink]

1 hour ago, spidermike007 said:

 Anyone know anything about wine specifically, in regard to this proposal?

 

Read the headline again