Tax overhaul: Thai excise department plans restructuring to close loopholes

[webfact]

 

The head of the Excise Department announced plans to overhaul the excise tax structure on alcoholic beverages and beer, aiming to eliminate existing tax loopholes. Ekniti Nitithanprapas pointed out the formal conversation is unfolding in conjunction with the private sector to secure an equitable and suitable tax framework.

 

Furthermore, many new beverage entries on the market are technically slipping through the cracks of taxation, including non-alcoholic beers, despite the recent tax restructure from factory-basis pricing to retail sales-led calculations, Ekniti added. These said loopholes permit these products to fall under the non-alcoholic drinks tax bracket.

 

Issues surfaced regarding a growing trend in the Thai market: Korean soju. The multi-process alcoholic drink involving both fermentation and distillation has been placed under the fermented spirits tax class at a mere 10%. This falls short in contrast with the hefty 20% tax applied to distilled spirits, barring rice whisky. According to Ekniti, this comparably low tax rate feels unfitting for such a consumable.

However, Ekniti stated this tax restructuring has not been designed with revenue increase in mind but rather, it is a targeted measure to tackle rampant tax evasion. Taking the case of zero-alcohol beers again, they could potentially fall into the alcoholic drinks category but face little to no taxation due to their non-alcoholic nature.

 

by Alex Morgan

Photo courtesy of Sean Watson, globe.co.th

 

Full story: https://thethaiger.com/news/business/thai-excise-department-plans-overhaul-of-alcohol-tax-to-close-loopholes

 

-- © Copyright Thaiger 2023-08-14

 

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[retarius]

Why should non alcoholic beer be taxed at all?

[mokwit]

9 minutes ago, retarius said:

Why should non alcoholic beer be taxed at all?

Because if it wasn't taxed people would simply switch from ordinary beer to cheaper non alcoholic beer.

[zyphodb]

1 hour ago, mokwit said:

Because if it wasn't taxed people would simply switch from ordinary beer to cheaper non alcoholic beer.

And drink Lao Khao chasers...      

[dinsdale]

Protectionism for the oligarchy. Something Pita wanted to get rid of. Get set for a price rise to increase their profits.

"Taking the case of zero-alcohol beers again, they could potentially fall into the alcoholic drinks category but face little to no taxation due to their non-alcoholic nature."

This could very well be a definition for completely insane. 

[Seamaster]

20% on top of monopolistic pricing already.

 

The price for shi++y scotch is ridiculous

[VocalNeal]

2 hours ago, webfact said:

Taking the case of zero-alcohol beers again, they could potentially fall into the alcoholic drinks category but face little to no taxation due to their non-alcoholic nature.

???? So they are non-alcoholic but should be taxed on alcohol content.

 

[Liverpool Lou]

50 minutes ago, Seamaster said:

20% on top of monopolistic pricing already.

Which "monopoly" would that be, then?

[Seamaster]

2 minutes ago, Liverpool Lou said:

Which "monopoly" would that be, then?

Internet and you will find. I don't want to state / name-accuse a Thai corporation of such practices.

 

The Thai stuff is relatively open (spirits only)

 

 

[Liverpool Lou]

57 minutes ago, Seamaster said:

The price for shi++y scotch is ridiculous

If you're complaining about the price being too high, then don't buy imported Scotch whisky!   If you're complaining about the quality, buy better than shi_tty whiskey!

[Liverpool Lou]

8 minutes ago, Seamaster said:

 I don't want to state / name-accuse a Thai corporation of such practices.

You couldn't because there is no monopoly on alcoholic drink production/sale here.

[dinsdale]

28 minutes ago, Liverpool Lou said:

You couldn't because there is no monopoly on alcoholic drink production/sale here.

You are dead right. It's not a monopoly it's an oligopoly and it's protected.

[BritScot]

1 hour ago, Seamaster said:

20% on top of monopolistic pricing already.

 

The price for shi++y scotch is ridiculous

The benifits of being back in the uk: two beautiful bottles of Malt whisky "Scapa" my ultimate whisky and Glenmorangie 14 year old (bourbon and port cask) whisky malt for under 4,000baht (£90). 

[Liverpool Lou]

39 minutes ago, dinsdale said:

1 hour ago, Liverpool Lou said:

You couldn't because there is no monopoly on alcoholic drink production/sale here.

You are dead right. It's not a monopoly

Thank you.

[hotchilli]

16 hours ago, webfact said:

Taking the case of zero-alcohol beers again, they could potentially fall into the alcoholic drinks category but face little to no taxation due to their non-alcoholic nature.

Clear as mud.

[Sigmund]

There may be some unbalance. Beer should be taxed a bit more perhaps and wine definately taxed less.

[RichardColeman]

17 hours ago, retarius said:

Why should non alcoholic beer be taxed at all?

Because NA beer is a waste of time. 

[Gsxrnz]

By definition, the stuff they call non-alcoholic "beer" is not beer. Weaselpiss is a better description.

 

Otherwise, grape juice would be called non-alcoholic Wine, and apple juice would be called non-alcoholic apple cider. 

[sammieuk1]

They were going to tax fresh air but couldn't find any ????

[alien365]

47 minutes ago, Gsxrnz said:

By definition, the stuff they call non-alcoholic "beer" is not beer. Weaselpiss is a better description.

It's not that bad. I drink it quite often. Sometimes I fancy a beer but don't want alcohol. 

[alien365]

I see the price of Heineken zero has gone down recently. It used to be about 40 baht, but is now about 32-33 baht (I can't remember exactly) in my lotus's anyway. Still can't buy it between the hours of 2-5 though. 

[Classic Ray]

19 hours ago, retarius said:

Why should non alcoholic beer be taxed at all?

Can we look forward to more taxes on Coke, orange juice etc which are also non alcoholic? How about water?

[BigFun]

17 hours ago, Liverpool Lou said:

Which "monopoly" would that be, then?

Ask Carlsberg 

[Venom]

1 hour ago, Classic Ray said:

Can we look forward to more taxes on Coke, orange juice etc which are also non alcoholic? 

Do you mean like a fat tax? ????

[Liverpool Lou]

1 hour ago, BigFun said:

18 hours ago, Liverpool Lou said:

Which "monopoly" would that be, then?

Ask Carlsberg

I have no need to, neither has anyone else, there is no monopoly.

[digger70]

22 hours ago, webfact said:

Furthermore, many new beverage entries on the market are technically slipping through the cracks of taxation, including non-alcoholic beers, despite the recent tax restructure from factory-basis pricing to retail sales-led calculations, Ekniti added. These said loopholes permit these products to fall under the non-alcoholic drinks tax bracket.

How stupid are they .

Why  would people have to pay the same tax for non Alcoholic Beer than for Alcoholic Beer . Non alcoholic drinks including the Non alcoholic Beer come under a different Tax bracket and it should stay that way.

This is the Greed  factor again. Fleece the people for whatever we can.

 

[stoutfella]

"Tax overhaul: Thai excise department plans restructuring to close loopholes"

which could be rewritten

"Tax overhaul: Thai excise department plans restructuring to squeeze more money out of the already suffering population."

[Purdey]

I think the taxman sees anything called "beer" as taxable, alcohol or not.