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

[jaywalker2]

18 hours ago, snoop1130 said:

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

 

 

I wonder how all those wine drinking countries have survived for so long. They should have collapsed into chaos by now

[cedel]

16 hours 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.

15000 B for a bottle of wine in Thailand is just extortion, limit scam because the same bottle in Laos, Cambodia, Europe or Australia costs probably "only" around 2000-3000 Baht! 

[Negita43]

15 hours ago, olongapo said:

I've had excellent red wines (shiraz)

Not a grape I rate

[Bruce Aussie]

Australian wine never came down in price. I come from the  Barossa Valley and enjoy a good red.

There are a few bottom end wines for 399bht.

Sone of them are ok and won't break the bank 

This was article last year 

 

In January 2024, Thailand significantly reduced wine import taxes, including exemptions for Australian wine under the Thailand-Australia Free Trade Agreement (TAFTA). This means that Australian wine is now largely free of import tariffs when entering Thailand. Additionally, the excise tax on wine was reduced to 5%, and there's a consumption tax for wines priced above 1,000 baht. 

 

 

[JBChiangRai]

There is a world of difference between plonk and decent wine.  Generally, I find 650-800 baht gets excellent wines.  I will occasionally buy a bottle at 1,500-1,800 but I don't buy wine over that price.

 

If I am trying something new, I use the Vivino app, whilst it's not 100% it is a fairly good guide if there are enough reviews.

 

95% of my wine come from VinesToVino.net on Thepprasit Road, ordered on the web.  The remaining 5% comes from WinePro.

 

The proprietor at VinesToVino occasionally recommends a wine to me, the last one was Barton & Gustier and called "Partager", at 379 plus VAT, it's the best I've found under 500 baht.  I'm a big fan of all of the La Reguta wines, under 700 baht and typically 4.3 to 4.5 score out of 5 on Vivino.

[spidermike007]

I regularly see wines here priced at 1200 baht, that are $7 to $12 in the US. Prices dropping? Someone sucked up those additional profits, if there were any. 

[connda]

OMG!  Thailand's turned into a bunch of winos.  "EEEEKKKK"  Reimpose the tariffs and taxes!  Quickly. 

Sing to the tune of The Song Of The Temperance Union

 

We shun the red wine, that devil's own brew,
One sip and your morals go tumbling askew.
It lures you to dance and to laugh in the night,
And soon you're cavorting in sinful delight.

 

Beware of the claret, that villainous drink,
It clouds up your senses and muddles your think.
One glass and you’re singing with scandalous cheer,
Next thing, you’re waltzing with bottles, Oh dear!

 

That wicked old vintage, it tempts with its glow,
But sip it, and straight to perdition you’ll go!
It whispers of vineyards, then leads you astray,
You’ll wake up reciting bad poems by day!

 

That treacherous wine, it’s a drain on the land,
Each gulp cuts the tariffs that Thailand has planned.
You drink, and the revenue slips through the door,
So banish that bottle, or tariffs restore!  

Away, away with rum, by gum,
Rum by gum, rum by gum,
Away, away with rum, by gum,
The song of the Temperance Union.

[Vibora99]

19 hours ago, mikebike said:

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

😂😂😂😂What do you drink for 1 euro? Gasoline in a plastic container? Wine by the liter? What year are you talking about? 1945/1950?

[ericbj]

Are "risks of accidents, domestic violence, and negative impacts on youth" greater from drinking wine than other alcoholic beverages ?  I doubt it.  And a decent red wine, drunk in moderation with a meal, has been shown to be beneficial to health.  A decent Australian red wine can be purchased for about 500 baht a bottle.

[DTL2014]

By classing it as a luxury item - you have deprived the opportunity for poorer sections of society - the ones that could actually do with the health benefits from anti oxidants...to have access to it.But home grown wine should definitely get a price advantage over imported wine..this is normal.But here it doesn't.Thais are wary around alcohol because of what lao khao does to social communites.....but the 2 should not be compared ....my price range is 400 baht to1300 baht and its still too high...also surely the higher volume makes up for some of the tax revenue loss..Thailand has a strong agricultural history already - one where it usually like to help its farmers -might as well diversify to higher value products ..reclassify local wine as an agricultural product - with a minimal amount of tax and watch the industry grow..could grow olives too - for healthier cooking oil...

[LALes]

What a load of crap this article is.  I've never seen any price reduction on wine

or spirits.  Just some different group of corporate kleptocrats dipping into the 

till.  That government official who was whining about lost revenue better go

around to some of his cronies to find out where the money went.

[connda]

11 minutes ago, LALes said:

What a load of crap this article is.  I've never seen any price reduction on wine

or spirits.  Just some different group of corporate kleptocrats dipping into the 

till.  That government official who was whining about lost revenue better go

around to some of his cronies to find out where the money went.

Just put the revoked tariffs in the PROFIT column. 

[khunjeff]

5 hours ago, sandyf said:

A few years back the government raised the tax on imported wine in an attempt protect the emerging domestic wine industry.

 

Thailand's wine industry is a virtual nonentity - it's difficult to find Thai wines to purchase at retail stores, even if one wanted to buy them. (I do, however, enjoy visiting Thai vineyards, which usually have nice restaurants.)

 

Taxes on wine here are essentially a luxury tax, not a protectionist measure. 

 

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

[sandyf]

1 hour ago, khunjeff said:

 

Thailand's wine industry is a virtual nonentity - it's difficult to find Thai wines to purchase at retail stores, even if one wanted to buy them. (I do, however, enjoy visiting Thai vineyards, which usually have nice restaurants.)

 

Taxes on wine here are essentially a luxury tax, not a protectionist measure. 

 

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

That is a distorted perspective. There was a study carried out in 2015.

From the Ai

 

Thailand's effective rate of protection on wine is 179.46%, which is significantly higher than the nominal tariff of 60%. This means the total cost of imported wine to a consumer is more than doubled due to various taxes and levies, according to a study published on Thai Journals Online (ThaiJO). 

 

Explanation:

• Nominal Tariff: The stated import tax on wine is 60%. 
   
• Effective Rate of Protection: This is the total cost of protection to domestic producers, including the nominal tariff and other indirect taxes or regulations. 
   
• The 179.46% effective rate: This figure indicates that the actual protection provided to local wine producers is much larger than the 60% nominal tariff. This means that imported wine is effectively priced 179.46% higher than it would be without these taxes, as noted in a study on ResearchGate.  

This is how the calculation is made in the study.

 

"1.1.3 Tax Structure

In Thailand for wine there is a tariff of 60 percent on imports. All other taxes compound off from the imports cost, insurance and freight (CIF) plus the tariff cost. Domestic wine taxes are calculated just on the cost and not the remaining values of the CIF and import tariff. Because of this the tax burden falls more heavily on the importers, creating favorable advantage to domestic wineries."

[sambum]

I've never noticed any difference in prices at all - I thought that as per usual the idea had been swept under the carpet! So where have all the expected price reductions for the customer gone? Sorry - stupid question

[daejung]

On 5/26/2025 at 11:16 AM, bubblegum said:

I have not seen a price reduction at all?

Same for me. I guess the benefit is for restaurants and shops.

 

[daejung]

On 5/26/2025 at 11:13 AM, snoop1130 said:

mid-range wines priced between 3,001 and 5,000 baht

 

Still very expensive. Good french wine are much cheaper

[daejung]

On 5/26/2025 at 11:24 AM, mikebike said:

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

Good wine starts at 3-4 euro a bottle (75 cl)

[PingRoundTheWorld]

It's costing the government nothing if it's increased demand that wouldn't exist if the taxes remained. In fact the government IS getting extra revenue from sales and income tax on the profits from those sales. And what social costs? That's nonsense- people just switched from cheaper local alternatives to better wine - which is a good thing. Those who would drink and drive would do it with wine or whiskey (if anything wine is safer), and youths?? youths aren't going to get wild on wine - LOL!

[hotandsticky]

I don't see the fuss; wine is still ridiculously expensive and the 'low-cost' fruit wines are worse than 1 Euro bottles of Spanish plonk.

 

 

I am currently on a 2 month sabbatical in Europe to escape the worst of the Thailand heat. I have been buying Rioja Crianza for just over 100 Baht a BOTTLE and it is better than most wines in Thailand priced 850 Baht up.

[still kicking]

On 5/26/2025 at 5:24 PM, mikebike said:

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

I pay 314 baht per 5 litres in OZ

[pomchop]

In usa now where can buy very acceptable to me wines for $5-8 a litre. so drink lots of red wine here...Soon go back to Thailand and switch completely to beer as wines are way overpriced not to mention it seems a lot of it goes bad from sitting out in the heat too much.  Also a glass of ice cold beer just seems to fit better in Thai bars then a lukewarm glass of overpriced wine.

 

[kiwikeith]

On 5/26/2025 at 4:16 PM, bubblegum said:

I have not seen a price reduction at all?

A good opportunity for importers to clip the ticket at this end. 

My son is an international buyer he's given up on Thailand long ago. 

A good mid range wine should only be 200/600 per bottle 

Jacobs Creek 200 Bhat in NZ, allways good, from Aussie 

[Rolo89]

Nonsense. Wine is still stupidly expensive.

 

I'm not paying Thai prices. 

[LALes]

Currently in the north of Italy.  I had a nice half bottle of Dolcetto d'Alba for 4 euros at the supermarket.   Meanwhile  Thailand is still scamming foreigners.