Report Tax-Free Wine Boom in Thailand Spurs Costs and Controversy

[snoop1130]

File photo for reference only

 

A new study reveals that Thailand's tax exemption policy on imported wine, introduced in early 2024, has sparked a massive increase in consumption, especially among wealthier citizens. While the policy was aimed at encouraging imports by reducing customs duties from 54%-60% and lowering excise taxes, it has also resulted in nearly 600 million baht in lost annual government revenue.

 

Researchers Assis Prof Dr Mana Laksamee-arunothai and Assoc Prof Dr Chidtawan Chanakul from Kasetsart University's Faculty of Economics have highlighted the repercussions of this policy. They found a staggering 300% rise in consumption of mid-range wines priced between 3,001 and 5,000 baht within a year. Overall, import values climbed by over 10%, mostly benefitting overseas wine producers. The reduction in high-end wine prices by over 10% has further fuelled demand among affluent buyers, while cheaper wines saw little price change.

 

The financial implications extend beyond tax losses. The study estimates the broader social costs, including increased risks of accidents, domestic violence, and negative impacts on youth, amount to over 10.3 billion baht. These findings have sparked debate over the wisdom of the tax exemption policy.

 

Senator Lae Dilokvidhyarat, expressing his concerns at a public forum, criticised the government's decision to waive taxes on what he termed "luxury goods" like imported wine. He argued that the policy contravenes fundamental economic principles, leading not only to lost revenue but also to adverse public health and social outcomes.

 

As the discussion continues, the policy's role in shaping economic and social dynamics in Thailand remains a topic of intense scrutiny and debate.

 

  Adapted by ASEAN Now from The Nation 2025-05-26

 

 

[bubblegum]

I have not seen a price reduction at all?

[Jingthing]

Wine should not be a luxury.

[mikebike]

3 minutes ago, Jingthing said:

Wine should not be a luxury.

Depends on where you are in the world, no? On the Mediterranean coast it's about 1 euro per litre 😉

[Baht Simpson]

So, they lowered the duty and people started buying more.  Did they not see that happening?

 

 

[ukrules]

12 minutes ago, bubblegum said:

I have not seen a price reduction at all?

 

Of course not, it's just more profits for the retailers. Based on the article 10% discounts to the most expensive wine in the world but they're getting away with 50% excise.

I expected nothing less than this, they already know the suckers will pay for it.

 

The only thing that will change it would be a new chain of wine shops that charges a reasonable mark up that would force the prices down everywhere else. Maybe that happens in the end

 

[spidermike007]

Seems like alot of nonsense. Since the policy was implemented wine does not seem to have dropped in price by more than 50 baht a bottle. 

[jas007]

If this is the policy that supposedly results in no taxes on wine priced at less than 1000 baht, I'm afraid I still see wines that cost much more than I would expect.  For example, I'm sitting here now sipping on some wine from Chile.  999 baht in Thailand.  It's not bad, but why so expensive, if there are no taxes? 

[KannikaP]

12 minutes ago, mikebike said:

Depends on where you are in the world, no? On the Mediterranean coast it's about 1 euro per litre 😉

And tastes like that's what it is worth.

[matchar]

"The reduction in high-end wine prices by over 10% has further fuelled demand among affluent buyers, while cheaper wines saw little price change.

The financial implications extend beyond tax losses. The study estimates the broader social costs, including increased risks of accidents, domestic violence, and negative impacts on youth."

 

So are teenagers now drinking high-end wine? Is Somchai drinking high-end wine before beating his wife? Well I never...

[mikebike]

2 minutes ago, KannikaP said:

And tastes like that's what it is worth.

😂😂 The exact same wine is poured into labeled bottles and sold to tourists for 25-30 euro/bottle 😂😂

[bubblegum]

13 minutes ago, ukrules said:

 

Of course not, it's just more profits for the retailers. Based on the article 10% discounts to the most expensive wine in the world but they're getting away with 50% excise.

I expected nothing less than this, they already know the suckers will pay for it.

 

The only thing that will change it would be a new chain of wine shops that charges a reasonable mark up that would force the prices down everywhere else. Maybe that happens in the end

 

Indeed, seems to me the article is a load of made up BS

[dinsdale]

32 minutes ago, snoop1130 said:

They found a staggering 300% rise in consumption of mid-range wines priced between 3,001 and 5,000 baht within a year.

This is mid-ranged? If there's a 300% increase in sales then this doesn't reflect a general market. This is the high end of the market. Anyone on here bought a Bt5000 bottle of wine lately?

[Schoggibueb]

34 minutes ago, snoop1130 said:

They found a staggering 300% rise in consumption of mid-range wines priced between 3,001 and 5,000 baht within a year.

Emmm, not sure if I read that correctly?!

 

Mid-range wines for that price?

[proton]

Never noticed even a 50 baht reduction on anything

[proton]

1 minute ago, dinsdale said:

This is mid-ranged? If there's a 300% increase in sales then this doesn't reflect a general market. This is the high end of the market. Anyone on here bought a Bt5000 bottle of wine lately?

 

Might be mid range, saw a bottle for 45k baht in Tops yesterday, crazy

[swerve]

This whole article is nonsense.

[jas007]

4 minutes ago, dinsdale said:

This is mid-ranged? If there's a 300% increase in sales then this doesn't reflect a general market. This is the high end of the market. Anyone on here bought a Bt5000 bottle of wine lately?

What do you get for 5000 baht?  I'd pay that, if the wine was exceptional.  

 

Why not post some examples?  In reality, among wine enthusiasts, 5000 baht isn't very much at all.  The cheap good stuff probably starts around 15,000 baht and goes up from there.  

[KannikaP]

31 minutes ago, jas007 said:

What do you get for 5000 baht?  I'd pay that, if the wine was exceptional.  

 

Why not post some examples?  In reality, among wine enthusiasts, 5000 baht isn't very much at all.  The cheap good stuff probably starts around 15,000 baht and goes up from there.  

And after your second bottle, you would not know if it was Bht15,000 or Bht 500!

[jas007]

3 minutes ago, KannikaP said:

And after your second bottle, you would not know if it was Bht15,000 or Bht 500!

Well, I would never drink that much in one sitting.  But you're probably right, sort of. 

 

For anyone who has never had first rate wine: it can be nirvana. A little trip to heaven.  Unless you've been there, you haven't done that. 

[GanDoonToonPet]

1 hour ago, snoop1130 said:

Overall, import values climbed by over 10%, mostly benefitting overseas wine producers

 

An increase in sales mostly benefits the manufacturers / producers? What a strange outcome 🤔

[dinsdale]

32 minutes ago, jas007 said:

What do you get for 5000 baht?  I'd pay that, if the wine was exceptional.  

 

Why not post some examples?  In reality, among wine enthusiasts, 5000 baht isn't very much at all.  The cheap good stuff probably starts around 15,000 baht and goes up from there.  

I've had excellent red wines (shiraz) in Aus for under Bt700 so under Aus$30. Bt15,000 is around Aus$700. This is top shelf stuff. BTW Australian wines are very, very good.

[realfunster]

 

48 minutes ago, swerve said:

This whole article is nonsense.

 

I started drafting a critical analysis of the OP which contains numerous information gaps and logical inconsistencies but to get to the point - yes, you are absolutely correct.

 

 

 

[daveAustin]

1 hour ago, dinsdale said:

This is mid-ranged? If there's a 300% increase in sales then this doesn't reflect a general market. This is the high end of the market. Anyone on here bought a Bt5000 bottle of wine lately?

Indeed, it’s typically supped by people because they can (and Thais especially love that side of it), but they wouldn’t necessarily know the difference from a 1000 bahter. 

 

Can get a decent Barolo off the shelf in the UK for 1000baht equivalent, even cheaper in sales. Probably looking at 2-3k here. 
Have noticed reductions over time in the supermarkets here but not massively so. 

Echoing chap above, can’t beat a sip of high end wine, or the best single malts etc, but a semi-decent cab’ every now and then will do me. Still grossly overpriced though. 
 

Surprising it harps on about how much they’re potentially losing now duty has apparently been lowered. Umm, no, because hardly any f’ker was buying it before. It’s grape juice! Shelve duty inline with western countries then see the roaring trade in wines! 

[Negita43]

Most wine in Thailand sadly seems to be designed for those who know little about it.

[olongapo]

53 minutes ago, dinsdale said:

I've had excellent red wines (shiraz) in Aus for under Bt700 so under Aus$30. Bt15,000 is around Aus$700. This is top shelf stuff. BTW Australian wines are very, very good.

 

[olongapo]

Australian wines here in philippines around 250 baht a bottle very good also.

[Artisi]

1 hour ago, bubblegum said:

Indeed, seems to me the article is a load of made up BS

Like most AI articles posted as newsworthy. 

[Jingthing]

I don't think the soul free number crunchers have the capability at looking at the wider perspective.

Take fine dining in Thailand for example.

European where wine is so natural and even sometimes Thai.

Such places generate revenue, taxes, and jobs for Thais.

But consider the lost business of people just not going as often to such places BECAUSE the wine cost is so ridiculous it becomes a substandard experience if they cut out the wine or drink less of it, crappier quality, etc.

Thaiiland sells itself internationally as one of the top foodie destinations in the world, especially Bangkok, and not only Thai food.

Well, with wine priced as it is here, they are limiting themselves.

 

[Denim]

I saw this coming . The Win motorcycle  rank has been littered with pricey wine bottles for months now. Have to walk around in the road to avoid tripping over them and the broken wine glasses.