Thailand to abolish hefty import tariff on wine

[webfact]

 

Buying wines in Thailand is going to get much cheaper, as the country is set to introudce a sweeping tax reform including completely removing import tariffs in an effort to boost the country’s tourism.

 

The country’s cabinent has passed a landmark decision to reduce taxes for alcoholic beverages including wine, local liquor and spirits to promote tourism, a significant contributor to the Thai economy, the government has announced earlier this month.

 

According to the government spokesperson, import tariffs on wines, which currently stands at 54% and 60% of declared value, will be abolished indefinitely. Additionally, the excise tax on wine will also be lowered from 10% to 5% of its price.

 

These tax cuts are expected to significantly reduce the cost of imported wines in Thailand, a country that has traditionally imposed an average tax of about 250% on wine, including import tariffs, excise tax, municipal tax, and a 7% VAT.

 

by Natalie Wang

Tuk tuk in Bangkok, Thailand (pic: canva)

 

Full story: VINO JOY NEWS 2024-01-08

 

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[ikke1959]

So no more 250% tax but only 10% or are the prices of the wines going down with5- 10%?

[mikebell]

33 minutes ago, webfact said:

Thailand, a country that has traditionally imposed an average tax of about 250% on wine, including import tariffs, excise tax, municipal tax, and a 7% VAT.

Staggering but this is par for the course on many farang foods/beverages even stuff made under licence or repackaged here.  They bang on about attracting tourists, who are the future ex-pats, yet penalise them with racist taxation.

[eyeman]

What's the real effect here, we will eventually see real wine in 7/11 at 300baht a bottle instead the fruit mix stuff? I recall reading there was another component (other than obvious protectionism) that keeps it artificially high too but cant find the link

[ozz1]

I'll believe it when i see it

[ChipButty]

Im thinking about the millions they have drove away who will never come back, usual pantomime in Thailand 

[bamnutsak]

Not sure I understand the logic here.

 

 

To make up for the lost tax revenue, they're going to have to rely on increased consumption.

 

Has someone done the math, or is some duopoly going to benefit from this change?

 

 

 

 

 

[Jingthing]

Ganjo out, Vina in?

[quake]

Oh, That's nice.

Seeing is believing.

wonder what the catch will be. 

 

[BenStark]

55 minutes ago, ikke1959 said:

So no more 250% tax but only 10% or are the prices of the wines going down with5- 10%?

 

It doesn't say that 250% tax will be removed, since that is the sum of all taxes combined.

 

What it says is import tariffs on wines, which currently stands at 54% and 60% of declared value, will be abolished indefinitely. Additionally, the excise tax on wine will also be lowered from 10% to 5% of its price.

 

I think that would translate to about 40% reduction in price of the end product. If that also will reduced in consumer price, will be another matter

[JoePai]

and Beer ?

[Henryford]

13 minutes ago, BenStark said:

 

It doesn't say that 250% tax will be removed, since that is the sum of all taxes combined.

 

What it says is import tariffs on wines, which currently stands at 54% and 60% of declared value, will be abolished indefinitely. Additionally, the excise tax on wine will also be lowered from 10% to 5% of its price.

 

I think that would translate to about 40% reduction in price of the end product. If that also will reduced in consumer price, will be another matter

 

So the wine tax will ONLY be 200%, thanks for nothing.

[FritsSikkink]

1 hour ago, mikebell said:

Staggering but this is par for the course on many farang foods/beverages even stuff made under licence or repackaged here.  They bang on about attracting tourists, who are the future ex-pats, yet penalise them with racist taxation.

Racist? Thai's pay the same tax, get a life. 

[Orient Express]

40 minutes ago, ozz1 said:

I'll believe it when i see it

Exactly.

 

The same article states: "It comes after the governemnt [sic] introduced a series of relaxations on booze sales. In 2022, it lifted a five-decade-long ban on alcoholic beverage sales in the afternoon between 2 and 5pm."

[Captain Monday]

So now peeps will afford to drinkwine made from actual grapes?

 

Not apple and pear refuse/concentrates imported from Poland 

[BigStar]

1 hour ago, ChipButty said:

Im thinking about the millions they have drove away who will never come back, usual pantomime in Thailand 

 

Maybe they did a survey and a few of the millions who'd left on account of the high tax on SangSom will happily return and save the country from its economic collapse.

[Purdey]

So, does the Thai government rely on taxes or not? Confusingly, most Thais avoid paying taxes so lowering tax should have a negative effect, no? Saying tourists will buy more alcohol and thus raise revenue means people who avoid taxes will make more and spend I guess.

 

it would be more helpful to expand the tax base, wouldn’t it? 

[BigStar]

1 hour ago, bamnutsak said:

Not sure I understand the logic here.

 

 

To make up for the lost tax revenue, they're going to have to rely on increased consumption.

 

Has someone done the math, or is some duopoly going to benefit from this change?

 

 

Yes.

[xylophone]

1 hour ago, eyeman said:

I recall reading there was another component (other than obvious protectionism) that keeps it artificially high too

That is called, "croneyism"!!

[freeworld]

1 hour ago, mikebell said:

Staggering but this is par for the course on many farang foods/beverages even stuff made under licence or repackaged here.  They bang on about attracting tourists, who are the future ex-pats, yet penalise them with racist taxation.

Why racist? it is tax and applies to everyone.

[xylophone]

9 minutes ago, Captain Monday said:

So now peeps will afford to drinkwine made from actual grapes?

 

Not apple and pear refuse/concentrates imported from Poland 

The knock-on effect could be felt in countries like Australia, South Africa and Chile, where low-end winemakers have been mixing fruit juice/fruit with the wine mainly to get over the tax/duties payable in the likes of Thailand, with some exporting it in bulk and others in bottle and cardboard casks.

 

I look forward to seeing the end result with the better class wines coming down in price, and I will do my bit to assist the government in making up the shortfall, by buying more and expensive wines!

[Etaoin Shrdlu]

Wine will continue to attract a tax based upon volume and the alcohol content, although the rate of tax has been reduced.

 

Under the old formula, wine was taxed at 1,500 baht per liter per 100 degrees of alcohol.

 

Under the new tax regime, the rate will be reduced to 1,000 baht per liter per 100 degrees of alcohol.

 

A 750 cl bottle of 14% alcohol wine will attract a tax of 105 baht. (.75 x 14/100)*1000. Under the old formula the tax would be 157 baht.

[huangnon]

1 hour ago, eyeman said:

What's the real effect here, we will eventually see real wine in 7/11 at 300baht a bottle instead the fruit mix stuff? I recall reading there was another component (other than obvious protectionism) that keeps it artificially high too but cant find the link

 

Thailand has an actual 'vineyard' just out of Rayong province, called "Silverlake" , producing basically cooking wine at extortionate prices.

Given that the heat and humidity here does not produce anything near a decent wine grape, this place (owned by some Thai billionaire elite) serves the illusion that Thailand has it's own "wine industry" that needs protection against evil foreign competition.

I think there are other vineyards scattered around Thailand doing the same thing. If any of them manage to produce anything of note, please update.

[dick turpin]

18 minutes ago, huangnon said:

 

Thailand has an actual 'vineyard' just out of Rayong province, called "Silverlake" , producing basically cooking wine at extortionate prices.

Given that the heat and humidity here does not produce anything near a decent wine grape, this place (owned by some Thai billionaire elite) serves the illusion that Thailand has it's own "wine industry" that needs protection against evil foreign competition.

I think there are other vineyards scattered around Thailand doing the same thing. If any of them manage to produce anything of note, please update.

 

Agree, took a couple of Swiss friends on a wine tasting tour of winery 

around khao Yai, they almost choked up on the samples.

 

My delicate palate, used to such "high quality" fare thought it was

 a premuim product by Thai standards and indeed, almost drinkable.

 

[dinsdale]

"It comes after the governemnt introduced a series of relaxations on booze sales. In 2022, it lifted a five-decade-long ban on alcoholic beverage sales in the afternoon between 2 and 5pm. It also extended oeprating hours for entertainment venues including nightclubs and bars to boost consumption."

Since when?????????????????? Seems lifting and implementing might be two different things. As for wine a possible 60% reduction would be great if that reduction is seen at point of sale. Beer?

[greeneking]

1 hour ago, bamnutsak said:

Not sure I understand the logic here.

 

 

To make up for the lost tax revenue, they're going to have to rely on increased consumption.

 

Has someone done the math, or is some duopoly going to benefit from this change?

 

 

 

 

 

Isn't there a government department punishing those who encourage the use of alcohol?  The usual confusion here.

[scorecard]

2 hours ago, ChipButty said:

Im thinking about the millions they have drove away who will never come back, usual pantomime in Thailand 

 

And meanwhile there's numerous incident with tourist boats sinking etc., 8 incidents in one week.

 

In recent years there's been several hundred tourist drowned when tourist boats floundered, sank, leaked, tipped over, no / not enough safety vests, etc., etc., and lots of promises of new / updated laws and regulations, inspection processes about safety but these incidents still continue. 

 

Everybody concerned is asleep.

 

In Pattaya there's incidents every day of tourists being robbed of gold chains, handbags etc. the katoeys on beach road get rounded up again and again, taken to the police stn., fined 100Baht and released.

 

The authorities who should be doing something serious to stop this (it can be stopped if the authorities are determined to do so), but they are all asleep. 

 

Meanwhile Vietnam is attracting bigger and bigger tourist numbers there's a lot to see, and they enforce their laws and regulations.

 

It's very easy to get visas on line, all done in 48 hrs. Step off the aircraft in Hanoi or Ho Chi Minh City (well organized, clean airports) and go straight to a passport line, 15 minutes later money changed (good rates) and in a taxi. And several taxi companies guarantee there will be no cheating / no rip off.

[bamnutsak]

Liquor tax exemption may harm health but not stimulate tourism: researchers

 

The proposed exemption, discussed by the Thai cabinet this week as part of an economic stimulus package, would prove ineffective at increasing tourism, according to researchers at the Thailand Development Research Institute (TDRI) including Dr Narit Pisalyabutr.

 

https://www.nationthailand.com/thailand/general/40034355

 

 

 

 

[NanLaew]

2 hours ago, ChipButty said:

Im thinking about the millions they have drove away who will never come back, usual pantomime in Thailand 

 

You are? Seriously?

 

I'm thinking about whether to have a late lunch or skip it altogether.

[bamnutsak]

I'm just trying to imagine any prospective tourists debating their vacation destination options, and thinking, "Thailand, yeah, I heard they sell wine at reasonable prices now, we should go there on holiday.".

 

My jaded guess is that two companies (families) control all wine importation here, and they lobbied the "government" for this change.

 

Recent data point for me, Australian Chardonnay, 599 THB here (on sale from 699 at Foodland), same wine/vintage ~ 235 THB in Australia (on line shops price lists, single bottle price).