Excise Department to Revamp Retail Prices for Higher Tax Revenue

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The Excise Department plans to update the recommended retail prices used to calculate excise taxes. Many current product prices are 5% to 10% lower than actual selling prices. A department source revealed that low recommended prices reduce government revenue.

 

The department collects 500 to 600 billion baht annually. Raising retail prices by 5% could increase government revenue by 20 to 30 billion baht. The review will focus on high-value items like cars, especially those from the grey market, which often have prices 5% to 15% below their true value.

 

In 2017, the department shifted the tax calculation basis from ex-factory or CIF prices to recommended retail prices, excluding VAT. If these prices don't reflect actual values, the director-general can set a new price for tax calculations based on sales or import prices, following ministerial regulations.

 

 

The department will use prices from major sales venues like modern trade stores as benchmarks to ensure market relevance. Recommended retail prices should include production costs, management expenses, and profit margins, and must not be below regular market consumer prices.

 

This change aims to prevent vendors from setting unrealistically low prices, which harm revenue. Recommended retail prices are seen as more accurate market indicators compared to ex-factory or CIF prices.

 

-- 2024-12-16