Thailand to abolish hefty import tariff on wine

[scottiejohn]

I will ask again!

Can anyone give a simple answer to this question!

"If a bottle of wine costs 1000Bht to a customer before the announcement of the tax reduction what should it cost after the change in taxation to that same customer from the same store?" (I am assuming that the seller passes on the price reduction!)

[jastheace]

17 minutes ago, scottiejohn said:

I will ask again!

Can anyone give a simple answer to this question!

"If a bottle of wine costs 1000Bht to a customer before the announcement of the tax reduction what should it cost after the change in taxation to that same customer from the same store?" (I am assuming that the seller passes on the price reduction!)

about 300 baht...assuming seller passes on the reduction....

source.... couldn't easily find it without going through loads of documents posted online, but IIRC duty on finished luxury goods was in the order of 300%. so say 1000 baht less sellers mark up of (guessing) 150 baht gives a cost of 850 baht, a quarterof that plus mark up. 300 baht more or less..... plus the usual farang tax.

edit. cut and paste from original article...

 

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.

 

[gamb00ler]

10 hours ago, FritsSikkink said:

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

It's a "targeted" tax... and the target happens to be primarily foreigners either as tourists or expats.  Some consider that racism or at least the shadow of racism.  Maybe it should be called wealthism.

 

There are similar taxes in wealthier countries.  For instance local governments impose hotel room, car rental or airport taxes so they can raise money from people other than their constituents.  Isn't that some of of -ism, also?

[spidermike007]

I will believe it when I see it. Progressive policy is not exactly the hallmark of this current administration, nor was it something the last administration engaged in. So we have 10 years of regressive politics. Is that about the change now?

 

This would be a very positive step in the right direction and would be something that might help to attract the higher end tourists they are constantly talking about.

 

Now, they have to look at the luxury taxes and lower them too, as the boutiques in Thailand don't do much business and are simply name brand showrooms for the major brands that support them, and lose alot of money on them. Nobody is going to spend $11,700 on a Prada purse they can buy in Singapore for $4,600.

[MangoKorat]

17 hours ago, BenStark said:

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

Yes, what's your betting that the retailers will simply think 'great, we will make more profit' and hardly reduce prices at all.

[bangkok19]

16 hours 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.

Shiraz grapes love the sun.

In fact, if you're talking Thailand wineries, Monsoon Valley (Hua Hin) is probably the only winery in Thailand that is embracing and using new winemaking technology to produce some fine wines.

As a matter of fact, the chief winemaker @ Monsoon Valley says they actually have to defoliate many of the vines of certain grapes to make sure that they get plenty of sun.

I was given a blind tasting of a Red Blend from Monsoon Valley, it tasted very similar to some of the Aussie entry level Reds (light to medium bodied) and probably better than some of the skunk juice that Thailand imports from Oz, Chile and S.Africa.

It's actually on the Wine List at the Oriental Hotel, a red and a white and costs the same as some of their imported Premium wines.

I, personally wouldn't buy it as I prefer bigger, full bodied Reds .

[soi3eddie]

Who really beleives that wine prices to the consumer will reduce?

 

[mikebell]

21 hours ago, freeworld said:

Why racist? it is tax and applies to everyone.

How many Thais buy wine?  Breakfast cereals? 

[cjinchiangrai]

17 hours ago, retarius said:

There is almost zero price competition in Thailand, so I'll believe price cuts when I actually see them on the supermarket or wine store shelves. I feel that most retailers and wholesalers will take the opportunity to increase profits rather than give the drinkers a break. And always remember here in Thailand anyone who cuts their prices to attract more customers gets his shop burned down or worse and the police will be unable to trace the perp. So as I said 'seein' is believin'.

They will in the short run but most will be given back to gain market share.

[Henryford]

13 hours ago, jastheace said:

about 300 baht...assuming seller passes on the reduction....

source.... couldn't easily find it without going through loads of documents posted online, but IIRC duty on finished luxury goods was in the order of 300%. so say 1000 baht less sellers mark up of (guessing) 150 baht gives a cost of 850 baht, a quarterof that plus mark up. 300 baht more or less..... plus the usual farang tax.

edit. cut and paste from original article...

 

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.

 

 

So a 1000 baht bottle of wine in the shops now will be reduced to 300 baht, i don't believe it.

[FritsSikkink]

12 hours ago, gamb00ler said:

It's a "targeted" tax... and the target happens to be primarily foreigners either as tourists or expats. 

No, that isn't the target. The target is people who drink wine which can be seen as a luxury drink.

A lot of the people in this forum only mix with poor Thais and don't know there are there are loads of Thai people making more money than them and do also drink wine (mostly of better quality too).

[bamnutsak]

10 minutes ago, Henryford said:

 

So a 1000 baht bottle of wine in the shops now will be reduced to 300 baht, i don't believe it.

 

My guess would be 600 - 750 (single bottle, lower on 6/12), with a restaurant probably being a bit higher, 800 - 1,300, from 1000 -1,500 currently.

[freeworld]

1 hour ago, mikebell said:

How many Thais buy wine?  Breakfast cereals? 

Quite a lot.

[bristolgeoff]

From my experience wine has being very high taxed here for a long time.If they do reduce the tax it will make many farangs happy,I know nearly everyone will drink wine if cheaper thais included.

[Sydebolle]

On 1/8/2024 at 1:45 PM, xylophone said:

NO.......what is being hauled across??

Not kiddies shampoo in pink bottles, I clue ya! 

[BigStar]

17 hours ago, spidermike007 said:

Nobody is going to spend $11,700 on a Prada purse they can buy in Singapore for $4,600.

 

You wouldn't, nor would anyone you know. It's nothing less than one of the classic Principles of ANF Economics that Thai shopping malls, purveyors of luxury brands, have seemingly always defied. Whenever the construction of a new mall is announced, our Economists lead a chorus of sneers predicting that no one will ever shop there for these reasons:

 

1. Thais are too poor

2. Rich Thais only shop abroad

3. Tourists have malls at home

 

So the extraordinary incredulity in 2003--after the INSANE rise in visa fees and the imminent Thai economic collapse as all the Golden Egg Layers were heading for the exits--that Siam Paragon should dare begin construction! WOT???

 

Yeah, whatta flop, always deserted, goods just gathering dust since 2005. The only explanation--brilliant, really, as one would expect here--is that a Thai shopping mall exists only to launder money! Known Truth. 

 

[xylophone]

1 hour ago, Sydebolle said:

Not kiddies shampoo in pink bottles, I clue ya! 

Still waiting with bated breath...........?

[RayC]

22 hours ago, Toby1947 said:

All for it as long as we don't get that French sh*the over here 😂

 

There's plenty of 'cheap' French plonk here already. Hopefully, this reduction in taxes will make decent mid-range French wine more affordable.

[The Fugitive]

Would buy wine in Thailand but wouldn't pay more than 150 baht.

[lamyai3]

On 1/8/2024 at 4:16 PM, sambum said:

And I presume that the photo of a tuk tuk has something to do with the stupid laws on advertising alcohol?

2023 - wine paeng paeng. 

2024 - wine tuk tuk. 

[lordgrinz]

I think a simple Australian Shiraz cost me 900 baht a few weeks ago. Haven't found any higher end Port wines yet, would like to find one that isn't ridiculously priced though.

[StayinThailand2much]

On 1/8/2024 at 8:19 PM, jastheace said:

about 300 baht...assuming seller passes on the reduction....

 

I doubt that this will happen. Perhaps a markdown to 700-800 baht, with the seller pocketing the rest. 

[StayinThailand2much]

1 hour ago, lordgrinz said:

I think a simple Australian Shiraz cost me 900 baht a few weeks ago. Haven't found any higher end Port wines yet, would like to find one that isn't ridiculously priced though.

 

Probably selling in Oz for 10 or 15 dollars. What a rip-off in Thailand, tax, or not...

[spidermike007]

9 hours ago, BigStar said:

 

You wouldn't, nor would anyone you know. It's nothing less than one of the classic Principles of ANF Economics that Thai shopping malls, purveyors of luxury brands, have seemingly always defied. Whenever the construction of a new mall is announced, our Economists lead a chorus of sneers predicting that no one will ever shop there for these reasons:

 

1. Thais are too poor

2. Rich Thais only shop abroad

3. Tourists have malls at home

 

So the extraordinary incredulity in 2003--after the INSANE rise in visa fees and the imminent Thai economic collapse as all the Golden Egg Layers were heading for the exits--that Siam Paragon should dare begin construction! WOT???

 

Yeah, whatta flop, always deserted, goods just gathering dust since 2005. The only explanation--brilliant, really, as one would expect here--is that a Thai shopping mall exists only to launder money! Known Truth. 

 

Some flagship stores with luxury brands are intended to lose money, and the brands know from the very start that they're not going to be profitable stores, yet they consider them to be valuable forms of publicity and the need for the brand to be seen. Let me know the last time you've seen anybody and a Prada store in Bangkok. 

 

Thais with the kind of money to spend 400,000 baht on a purse travel a lot, and they'd much rather spend 140,000 baht on that same purse in Singapore or London. Same applies to tourists, the most common complaint I've heard from wealthy tourists is that they'll never return because the wife won't shop here, as luxury prices are beyond insane. 

[flyingtlger]

They should do this for imported cars....

[jacko45k]

On 1/8/2024 at 9:27 AM, bamnutsak said:

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

They are looking to tax income from overseas for both locals and Expats, so they got that covered!

[Rumpelstilskin]

On 1/8/2024 at 11:49 AM, scorecard said:

 

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.

Agree that the road taxis are more transparent in Vietnam, where they lag Thailand is motorbike taxis. There are no uniforms, no order or que. Random people asking you to ride with them, no thanks.  Vietnam air quality in Hanoi and Sapa both terrible. The food variety and freshness in Thailand is superior.  Vietnam doesnt clean up well, too much trash and no one stops to pick it up. Agree about nice new airports, but then what?

[BigStar]

On 1/10/2024 at 12:40 AM, spidermike007 said:

Some flagship stores with luxury brands are intended to lose money, and the brands know from the very start that they're not going to be profitable stores, yet they consider them to be valuable forms of publicity and the need for the brand to be seen.

 

Typical fallback excuse used for all stores our posters think are overpriced, not just known luxury brands. Levis jeans for example: Nobody's going to pay that! And so our Economists, such as yourself, who rely only on their Eyeballs At Random Intervals, for econometrics, never see any shoppers in mall stores. Part of it is that by definition they cannot exist, just as Thai tourists in Pattaya cannot exist.

 

In an old jeans discussion, our posters, normally purists who insist on authenticity in everything except themselves, laughed at the idea of paying for Levis when a fake in a Thai market only costs B200.

 

Another issue is that multiple shoppers must be seen lined up at the cashiers ready to pay. Otherwise, they're just enjoying air conditioning. ANF Economist rule: In a mall, Thais cannot look before buying. They can only look before looking.  

 

So you'd have to open your eyes and really be around often, esp on weekends or holidays to realize that, yes, the shops do have buyers and are sufficiently profitable. No, they aren't just there to show a presence in multiple malls.

 

 

On 1/10/2024 at 12:40 AM, spidermike007 said:

Thais with the kind of money to spend 400,000 baht on a purse travel a lot, and they'd much rather spend 140,000 baht on that same purse in Singapore or London.

 

Just a convenient projection to support a biased belief. I can tell you that like most Thais, when they see something they want, the wealthy want it now and since they have the money to buy it now, they do. They don't really do your K-Mart blue light shopping.  

 

On 1/10/2024 at 12:40 AM, spidermike007 said:

Same applies to tourists, the most common complaint I've heard from wealthy tourists is that they'll never return because the wife won't shop here, as luxury prices are beyond insane. 

 

Over the decades our Economists have never understood, or refused to understand, the average tourist mentality. Now with typical bigotry you've omitted Thais as tourists (as I referenced above). It's a complete mystery why tourists buy abroad what they could just as easily buy cheaper at home. This is what has doomed all the Thai shopping malls and left them deserted ruins just laundering money. I love ANF Economics.

 

But the same principle applies at home, you see. Brighton, in the UK, has the same shops, or variants, as London, besides souvenir shops. Yet day trippers buy a lot in those shops anyway, and domestic tourism is critical to the economy of Brighton. WOT??? How can that possibly be? But all Brits understand that--in the UK. Somehow, it doesn't apply in Thailand.

 

Buying stuff is an important part of the enjoyment of holidaying. People expect to buy, they allocate or borrow extra funds for the purpose, they expect to pay more and don't mind paying more (until the bill comes due, ha ha). It's a splurge. 

 

You know wealthy Asian tourists to whom brand names are critically important? No. Who's buying those Levis that supposedly no one will buy? Russians, for one, true to stereotype.  

 

On 1/10/2024 at 12:40 AM, spidermike007 said:

the most common complaint I've heard from wealthy tourists is that they'll never return because the wife won't shop here, as luxury prices are beyond insane. 

 

Oh, you made that up. I might point out that a lot of the big spenders among Asians are younger people relying on family and company wealth.

 

On 1/10/2024 at 12:40 AM, spidermike007 said:

Let me know the last time you've seen anybody and a Prada store in Bangkok. 

 

Gf and I used to spend a lot of time in Emporium when we lived in BKK as it was nearby. Often ate and shopped there and enjoyed looking around in luxury shops. Of course we saw other shoppers in there. There needn't be many for those shops to survive because of the profit margins. I should note that in USA malls the situation was about the same with luxury brands even without the import tax. So you're left with all the stores are intended to lose money, just to have a "presence."

 

[spidermike007]

5 hours ago, BigStar said:

 

Typical fallback excuse used for all stores our posters think are overpriced, not just known luxury brands. Levis jeans for example: Nobody's going to pay that! And so our Economists, such as yourself, who rely only on their Eyeballs At Random Intervals, for econometrics, never see any shoppers in mall stores. Part of it is that by definition they cannot exist, just as Thai tourists in Pattaya cannot exist.

 

In an old jeans discussion, our posters, normally purists who insist on authenticity in everything except themselves, laughed at the idea of paying for Levis when a fake in a Thai market only costs B200.

 

Another issue is that multiple shoppers must be seen lined up at the cashiers ready to pay. Otherwise, they're just enjoying air conditioning. ANF Economist rule: In a mall, Thais cannot look before buying. They can only look before looking.  

 

So you'd have to open your eyes and really be around often, esp on weekends or holidays to realize that, yes, the shops do have buyers and are sufficiently profitable. No, they aren't just there to show a presence in multiple malls.

 

 

 

Just a convenient projection to support a biased belief. I can tell you that like most Thais, when they see something they want, the wealthy want it now and since they have the money to buy it now, they do. They don't really do your K-Mart blue light shopping.  

 

 

Over the decades our Economists have never understood, or refused to understand, the average tourist mentality. Now with typical bigotry you've omitted Thais as tourists (as I referenced above). It's a complete mystery why tourists buy abroad what they could just as easily buy cheaper at home. This is what has doomed all the Thai shopping malls and left them deserted ruins just laundering money. I love ANF Economics.

 

But the same principle applies at home, you see. Brighton, in the UK, has the same shops, or variants, as London, besides souvenir shops. Yet day trippers buy a lot in those shops anyway, and domestic tourism is critical to the economy of Brighton. WOT??? How can that possibly be? But all Brits understand that--in the UK. Somehow, it doesn't apply in Thailand.

 

Buying stuff is an important part of the enjoyment of holidaying. People expect to buy, they allocate or borrow extra funds for the purpose, they expect to pay more and don't mind paying more (until the bill comes due, ha ha). It's a splurge. 

 

You know wealthy Asian tourists to whom brand names are critically important? No. Who's buying those Levis that supposedly no one will buy? Russians, for one, true to stereotype.  

 

 

Oh, you made that up. I might point out that a lot of the big spenders among Asians are younger people relying on family and company wealth.

 

 

Gf and I used to spend a lot of time in Emporium when we lived in BKK as it was nearby. Often ate and shopped there and enjoyed looking around in luxury shops. Of course we saw other shoppers in there. There needn't be many for those shops to survive because of the profit margins. I should note that in USA malls the situation was about the same with luxury brands even without the import tax. So you're left with all the stores are intended to lose money, just to have a "presence."

 

 

Though I cannot fault your  articulation, I certainly can fault your multiple presumptions that are based on nothing but prejudice and thin air.

 

I don't know if I shopped in Kmart in the last two decades. Ha, got you there. 

[BigStar]

13 hours ago, spidermike007 said:

I certainly can fault your multiple presumptions that are based on nothing but prejudice and thin air.

 

In your own mind. Your naive, false conclusions are merely based on your "statistics" selectively derived from your Eyeballs At Random Intervals to reinforce a preconceived bigoted narrative. It's part of your fundamental belief that Only Farang Have Money you've never been able to get over. We've discussed this again not long ago, and I showed you the before and after pictures of Pattaya's far superior development under international tourism, after the Golden Egg Layers ran out of golden eggs.

 

The Eyeballs evidence underpins most of the laughable economics on the forum: the shopping bag count, the lights on at night count, the red license tags count, the lines at the banks count, etc. Never see any actual numbers even with the supposed "counts," however. :) Nor have you looked at any actual balance sheets. It turns out that my Eyeballs see a lot more than yours, sorry. That's cause they aren't selectively biased and have frequently been in various high end shops and not so high end, such as mere Levis, where our Economists would never go. But I also have common sense and more knowledge about the market in general. 

 

13 hours ago, spidermike007 said:

 

I don't know if I shopped in Kmart in the last two decades. Ha, got you there. 

 

No, merely shows I adjudged aright your mentality and its provenance. Mentally, you're still in K-Mart looking for those Blue Light Specials and imagine others are as well, at all times. You need a lot of updating, but even when you're shown the evidence, you ignore it and go right back to sit in your old bathwater.