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Will Drinkers Toast New Thai Liquor Tax?


webfact

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I think this article is an example of very poor, unresearched journalism, which seems typical of so much Thai media, when it comes to "social" issues.

The dropping of the import duty will only level the playing field - that is the issue for the local alcohol manufacturers. It will become more competitive - particularly for the beer and spirits companies.

Whether or not the government decides to increase the excise tax, is not the issue, because ALL alcohol will be affected. But in reletive terms a bottle of whiskey now imported from say the Phillipines will now be able to be landed in Thailand at a price which could make it quite competitive to the Thai manufactured item. Similarly, the Thai company can now export a bottle of local whiskey to say the Philippines.

But, of course this could also show which of the companies is more cost efficient....or perhaps the fear is "inefficient"!

Further, if Thailand decides on using this in some way, to maintain a "local protection", it sort of makes a mockery of the FTA, doesn't it ?

Leveling the playing field is one thing, but I bet even if the *net* price on affected alcohol goes down you'll see the bars *raising* prices.

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