Rocky start for Thailand’s latest alcohol tax reform

[Bangkok Barry]

3 hours ago, SABloke said:

Well, one would assume that the current stock on the shelves in your local shop were purchased weeks or months prior, so can't expect the retailers to just take a loss for your benefit. However, it would be interesting to see by how much prices go down in 7/11 et al next month. I will be surprised if they go down at all.

 

It depends. I managed a record store in the UK and tax was paid after sales. It really pi**ed customers off when I had to put prices up on existing stock the day after the budget. I don't know what system they use in Thailand.

[Bangkok Barry]

One importer revealed to db that the Thai excise website crashed two hours after the registration opened. As recently as 10 March, businesses were still unable to pay duties on any bottles of wine since the changes came into force at the beginning of the month.

 

Well, there's a surprise. A government website not working.

[hotchilli]

5 hours ago, proton said:

Not seen even a one baht reduction on anything so far, when is this going to start?

When old stock is sold from the shelves and replaced by the new stock... my guess is Q4... 

[Wrwest]

5 hours ago, proton said:

Not seen even a one baht reduction on anything so far, when is this going to start?

Agreed. In a few minutes, I will check but … don’t think so.

[Formaleins]

4 hours ago, SABloke said:

Well, one would assume that the current stock on the shelves in your local shop were purchased weeks or months prior, so can't expect the retailers to just take a loss for your benefit. However, it would be interesting to see by how much prices go down in 7/11 et al next month. I will be surprised if they go down at all.

They are damn pretty quick off the mark when the price increases though!

[Pinot]

Spoke to a wine rep the other day and she pointed out that the stock now selling is still at the old cost. You won't see any price cuts till new stock shows up. 

 

Give it a couple of months and it will come down for competitive reasons. 

[dinsdale]

3 hours ago, Tropicalevo said:

But not between 14:00 and 17:00

And 12:00 am-11:00. Don't forget this. Alcohol is only for purchase at 711's, supermarkets etc in Thailand for only 10 hrs a day. Just insane. Of course where tourists go bars and restaraunts continue to serve.  

[Frankie baby]

It's going to take some time before the old, taxed, stock is cleared & replaced by the cheaper stuff. Assuming the importers paid the tariffs before suppling the shops etc. 

[Sydebolle]

Whoa, how great is this. Thailand is training all customs offers to be ....... but read for your self " the customs and excise will determine the wine value".

The hub of all sommeliers it seems, if not the mother-of-hubs 😉 

[Grumpy one]

6 hours ago, proton said:

Not seen even a one baht reduction on anything so far, when is this going to start?

When or if the current stock is all sold ( maybe )  

[daveAustin]

6 hours ago, proton said:

Not seen even a one baht reduction on anything so far, when is this going to start?

Probably not come in yet but have noticed 7-11 upped their wine in multiple locations in a not very touristy town. 500 baht for an okish cab, which would be 200 baht in UK. 699-999 when you start getting half-decent recognisable names??? 55555. No thanks. Could be wrong, but from what I gather, something like 100 baht ish could come off a potential 500 baht bottle of wine (at the customs end). Duty needs to be properly axed (most of it) and genuinely passed down to consumers (big fines for those not cooperating) for this government ands cronies to join the 'league of nations' and wine industry to take off. But won't happen because of the donkeys sifting off the top and the so called protectionism for the Thai wine industry (😂😂).

[daveAustin]

Gin and vodka not too bad, but I will just continue to drink the monopolised dishwater beer. Good in a way because there's only so much one can take before one's taste buds have had it and it's time to call it a night.

[CM Dad]

Tax on wine is paid when the wine is brought into the country, not when it is sold in retail shops.  When sold at retail outlets then VAT tax is added to the price.  I noticed yesterday that some of the best selling wines where I shop were close to being completely sold out.  The logical reason for this is that importers are trying to get rid of stock that they have imported and paid higher taxes on before they import more product at the lower tax rate.  Those who expect immediate reductions in price are being foolish and have no business sense.  

[sambum]

7 hours ago, proton said:

 

That only applies to wine, I thought it included local beer and spirits also?

 

I think the word "Imported" is a bit of a giveaway!

[LatPhrao]

8 hours ago, smedly said:

unless this is passed to the consumer it is pointless, who thinks it will ?

 

I have my doubts unless government make it mandatory 

I was thinking about this prior to this news/article. The possibility existed that wholesalers and especially retailers could benefit from the taxation declines and just continue to sell at the old pricing. The government now will be cutting into that possibility as they'll be setting the pricing based on new taxation levels.  A win for the retail customers (restaurant or wine shop).  Seems like a brilliant move to simplify and cut to the chase of getting lower priced wines on the shelves.

[LukKrueng]

What about tax reduction for cigarettes?

[Lancelot01]

8 hours ago, jacko45k said:

Agreed.... still well over-priced. 

Lotus's have recently raised the price of my favourite sm beer tipple by B4 so I suppose I will be impressed when it is reduced by B4 by the end of the year.   

[brianthainess]

6 hours ago, dinsdale said:

Maybe the delay is more to do with working out the process after the announcement rather than before. The entrance tax is a good example of this. First the thought bubble, then the announcement and then work out how to implement it.

Usual style in Thailand IMO

[Peterphuket]

3 hours ago, spidermike007 said:

I will believe this when I see it, the concept of the Thai government making a sacrifice to benefit consumers or tourism is unheard of. It would be a rather astonishing development and a display of wisdom and intelligence which is something that we very rarely ever see here on a governmental level.

 

The secondary consideration is will these reduced prices be passed on to the consumer? Thailand could have a very, very dynamic luxury wine industry if they lowered the taxes.

 

That 54% figure is not the correct amount for a wine. Import taxes are much, much higher than that on fine wine. Why else would good wine be 3 to 5x more expensive here, than in the US? 

 

Why is the tax on wine in Thailand 250% on average? In most cases, duties constitute a state’s primary protection against products imported from other countries in direct competition with local production.

 

https://silklegal.com/wine-tax-in-thailand-a-protectionist-barrier/

Despite the fact that not everyone can appreciate this wine, I am satisfied with it, this is the Mont Clair, for several years you could buy this wine for 1490 thb for 10 litres as opposed to today's 3 litre pack for 980 thb.
The price of 149 thb/ltr I never expect to get back.

[Cabradelmar]

I have to say, I've not seen any reduction in the cost of imported wine. I suspect the vendors are just pocketing more profit. 

[zig]

3 hours ago, spidermike007 said:

That 54% figure is not the correct amount for a wine. Import taxes are much, much higher than that on fine wine. Why else would good wine be 3 to 5x more expensive here, than in the US? 

 

Why is the tax on wine in Thailand 250% on average? In most cases, duties constitute a state’s primary protection against products imported from other countries in direct competition with local production.

 

https://silklegal.com/wine-tax-in-thailand-a-protectionist-barrier/

54% import tax seems to be correct but, as your quoted article states, there are multiple other taxes added on top of it, i.e. 160bt per bottle excise+local tax +  10% consumption tax for better wines + 7% VAT . Still, even considering all these, I also do not understand how the wine prices here can be averagely 3-4 times higher than in Europe too. And not only on good wines but on cheap ones too. Furthermore, the 54% import tax should not even be applicable for wines from Chile and Australia. 

Either way, one can hope that proposed reductions in import tax and excise tax shall result in some reduction in prices eventually.

[crazykopite]

The whole thing is a joke the prices in Makro are the same as they were in December as I make a note on prices of particular drinks that I participate in 

[khunjeff]

10 hours ago, proton said:

That only applies to wine, I thought it included local beer and spirits also?

 

10 hours ago, proton said:

 No reduction on beer or spirits but there should have been by now

 

8 hours ago, foreverlomsak said:

Since the reductions in tax levies were announced, the only effect I've seen at some (not all) of my local "refreshment" stops, has been a 10 Baht increase in the price of bottles of local beer, I don't drink wine and very little spirits so don't really know about them.

 

6 hours ago, proton said:

what about local beers and spirits?

 

2 hours ago, Lancelot01 said:

Lotus's have recently raised the price of my favourite sm beer tipple by B4 so I suppose I will be impressed when it is reduced by B4 by the end of the year.   

 

Beer, whether local or imported, is not part of any of these tax reduction schemes.

[zyphodb]

5 hours ago, Formaleins said:

They are damn pretty quick off the mark when the price increases though!

 

 

Always...

[nglodnig]

7 hours ago, Bangkok Barry said:

and tax was paid after sales

I think you'll findfthat was VAT which is taxed at the point-of-sale (when the chancellor puts VAT/fuel duty up there was a mass scramble to fill up before the increases started at midnight, often leaving petrol stations empty)

 

Import duty is paid as its name imples at the point of entry and passed on as part of the reail price

Edited March 15 by nglodnig

[kickstart]

10 hours ago, Tropicalevo said:

But not between 14:00 and 17:00

Tell the tourists to go to the shops down a Soi 2-300 yards from their hotel they can buy alcohol at any time.

[wimpy]

13 hours ago, KannikaP said:

Kulov vodka up another Bht 10 in the past month, now Bht 330.

Inflation.

[Nickcage49]

It's about frikin time!

[sherwood]

Yer yer yer, new format on the Tax and the customs clowns will just make more money.

Almost enough to stop a fella drinking.

[Kalasin Jo]

14 hours ago, Tropicalevo said:

From the full article

 

“It’s not like tomorrow everybody will drop their prices by 30%. It’s going to take a long time to implement it step by step,” says Conrad, as the price changes must be reflected across the supply chain. “Maybe by the end of the year, we could see some effect.”

By which time we will have forgotten about what should be a significant point of sale reduction, not "some effect". If it's  leaving the bonded warehouse at the new tax rates now surely it reaches the point of retail sale in a matter of days not months. Unless the retailer has massive stock bought at the old rates to clear first. At the moment and ever since I arrived here (2012) the price of real wine, therefore imported, has been scandalously high. A half decent wine seems to start at over 1,000 baht a bottle retail and I mean half decent, the ones that are regarded as every day wines where they are produced and consumed selling at retail for around € 5 to 10 a bottle in those countries in Europe.