Shock Rise On Imported Alcohol By 400 Baht/Litre

[sirchai]

Probably based on 100%, given the fact that most spirits don't have a content over 40% it will be not that high.

It's 400 Baht per liter for imported alcohol under 80 degrees! That means that the price for a big bottle of Heineken for example will increase by 264 Baht because it contains 660ml. That's a lot!!!

A lot less............

[Barin]

Another knee jerk action of an aimless government.

Fact is: 80% of all alcohol consumed in Thailand is so-called white alcohol ("lao kao"), which is not taxed.

Fact is, a liter of 40% alcohol costs less than a liter of wine at 13% alcohol.

Fact is, taxing on value rather than on alcohol content is just a fiscal act, NOT something able to fight alcoholism.

Consequence of this: heavy drinking is encouraged, while enjoying moderatly is punished.

Please allow me to make some corrections.

First of all I do not believe that 80% of alcohol consumed in Thailand is in fact white spirit (Lao Khao).

If we calculate in litres probably 80% of alcohol consumed in Thailand is in the form of beer.

Secondly, my nieghbours in Isaan have a small distillery to produce Ruang Khao (40% of alcohol by volume) and they do pay excise tax!

All alcohol produced in Thailand is subject to excise tax without any exception.

[Maestro]

Probably based on 100%, given the fact that most spirits don't have a content over 40% it will be not that high.

it didn't say "over" but under 80proof (40%) which means 40% is taxed higher which applies to most spirits.

It, ie the news reports, didn't say "proof", either, but "degrees", and I dare say that both are wrong, as I have never seen the alcohol content expressed in degrees or proof in Thailand on beverage labels or government edicts. Anyway, "proof" means one thing in the USA and used to mean another thing in the UK (where they now use ABV).

[Thai at Heart]

Bt120 per litre of alcohol for domestically-produced products and Bt400 for imported products, regardless of alcohol content.

the words regardless of alcohol content.

so its not based upon alcohol by volume

Yes, The Nation says "regardless of alcohol content".

This is quite confusing, it means that the new excise tax for Tiger beer imported from Singapore will be 0.64 x 400 = 256 Baht.

And it means that a big bottle of Tiger Beer will be sold in Thailand for 300 Baht!

This is ridiculous.

I believe the wording "regardless of alcohol content" should be clarified.

So what odds, that the nation has no idea about the meaning of what it is saying?

[Thai at Heart]

OMG - 8 pages of whining for a small price hike.

The excise for imported whiskey is 360 thb/l today. Tomorrow it will be 400 thb/l.

Please note that the news article says excise will be increased TO 400 thb/l, not BY 400 thb/l.

I missed that. I bet I'm not the only one! Good catch, mate.

The article's headline is incorrect...

Of course.

And the increase is per liter of pure alcohol.

So for a 700ml bottle at 40%, you're looking at a price increase of... wait for it... 12 baht.

Winnie you have posted some good posts re this topic. Most readers see the headline and their judgement is totally clouded.

I have never seen a thread explode like this. I think we have a lot of nervous posters who think their hip pocket my be dented when this impact will be very small There have been 5 new post since I have started typing

I mean who would ever have thought that such a quality paper as the nation could screw up the interpretation quite so badly? :-$

[Gumballl]

TAXATION

Higher taxes on alcohol/cigarettes

The Nation

BANGKOK: -- The Cabinet today approves the Finance Ministry's proposal to slap a heavier tax rate on alcohol and cigarette products.

The Finance Ministry reasoned that this action would raise the government revenue as well as reduce consumption of the unhealthy products.

With immediate effect, the excise tax rates on eight cigarette brands will be raised by Bt6-Bt8 a pack. The rates on alcohol products would be raised to Bt120 per litre of alcohol for domestically-produced products and Bt400 for imported products.

The excise tax does not require a legal amendment, as the new tax rates are still within the legal limits.

-- The Nation 2012-08-21

RT @tulsathit: Sin taxes will rise immediately (tomorrow), obviously to prevent hoarding and all. @Bodhisutva

A lot of worry going on in this thread. Has anybody researched and posted what the current excise tax rate is?

There's a world of difference when using the phrase "raise to" versus "raise by".

Unless otherwise posted earlier, for all we know the current tax rate is 115 and 350 baht, respectively, for the alcohol. Thus the increases, although never welcomed, are not not going to end the world as we know it.

Edit: Perhaps next time I should start reading these threads in reverse order. Insanity comes first, then sanity. Anyhow, it seems my question has already been answered.

Edited August 21, 2012 by Gumballl

[Pops]

Lets not panic too quickly. I work out the extra cost on a bottle of San Mig Light being 2 baht.

Is it not 400 THB/Liter divided by contents of bottle san miguel light, for this is an imported alcoholic beverage ???

so if a bottle of San Miguel Light is 33 cl it would get 133 THB more expensive, right ??

[joefromdc]

Winnie you have posted some good posts re this topic. Most readers see the headline and their judgement is totally clouded.

I have never seen a thread explode like this. I think we have a lot of nervous posters who think their hip pocket my be dented when this impact will be very small There have been 5 new post since I have started typing

I basically agree with your point, Koo, except in this case, the headline is just dead-nuts wrong. Not just misleading. Just plain wrong.

Who wrote the headline?

[Barin]

So can someone explain how this affects the free trade agreement with Australia http://www.dfat.gov....y-outcomes.html ??

For agricultural products subject to tariff rate quotas prior to 1 January 2005, Thailand has either eliminated the tariff and quota restrictions or will expand access for Australia over a transition period varying according to the product, before final elimination of the tariff rate quota.

Wine, beer and spirits

• Thailand immediately reduced its previous 54% tariffs on wine to 40%, and will phase the tariff to zero in 2015.
  
• For beer and spirits, Thailand immediately reduced its previous tariffs of 60% to 30%, before phasing to zero in 2010
  

I think that excise is not a tariff.

Yes, you are quite right.

There are two separtate taxes to be paid on imported alcohol in every country:

1. The imports tax (according to the imports tariff)
   
2. The excise tax
   

So I don't understand how the retail price of Gilbey's Vodka (imported from the Phlippines) in Tesco Lotus or elswhere can be as low as 320 Baht per 0.7 litre bottle.

There is something tricky here...

Gilbey's Vodka from the Philippines is too sharp for drinking, you may notice this if you drink it straight.

[rakman]

So how will it increase revenue if less is sold at a higher price?

And, a bottle of beer (660ml) is to increase by around 100 baht?

Other than in backward societies were there is no universal healthcare, the system ends up with sky high costs for everything from liver disease to cancer. Best is therefore to have no turnover at all. Cigarette prices should go to the roof and for alcohol the increases are still very modest given the fact that 1 liter of alcohol does not equal one liter of beer.

The fallacy of "universal healthcare" is that it's "free". Nothing is further from the truth. Healthcare is expensive and government funded healthcare has to be paid somehow. Given government inefficiency, it is the worst way to fund healthcare.

A few problems with "sin taxes", one is the government becomes dependent on the revenue, what ever it is, the second is where will the replacement revenue stream come from? A third is the higher taxes opens the door to smuggling and cheating and loss of revenue, as well as loss of sales.

The truly addicted will continue to consume, or find alternative cheaper "drugs", the more responsible will either reduce their intake or reduce the number of "nights on the town".

A government powerful enough to give you everything, is powerful enough to take it all away.

[Maestro]

The alcohol excise tax on rice whiskey was increased from 120 baht a litre to 150 baht a litre based on alcohol content, and for blended liquor from 300 baht to 350 baht per litre. The tax on brandy increased to a maximum of 50 per cent from the existing rate of 48 per cent.

The new rate does not apply to beer or wine, which already face maximum taxes.

source : forbidden in here

Now we know by how much the tax increases, and our mathematicians can calculate by how many Baht the tax increases for their favourite beverages.

Interesting to see that there is no mention of 400 Baht here. Perhaps another publication will talk about yet another rate.

Also interesting is the distinction between "blended liquor" with the excise tax expressed in Baht per litre and "brandy" with a tax expressed in per cent. Makes me wonder into what category a single-malt whiskey falls.

[Billmont]

I think small annual increases on alcohol tax is normal and accepted in Europe. In the UK at least they immediately advise how much wine and spirits will increase 5p, 7p or 10p etc. Beer 3p per pint or similar. In Thailand it is not so simple as that so we will just have to wait until it is clarified. I hope imported wine does not increase too much as it is heavily over priced at the moment. In a good restaurant in Thailand a low priced bottle of wine will be around THB 1,500 or £30, in the UK a similar bottle of wine in a restaurant will cost about £12 - £15. In a UK supermarket a good bottle of wine can be obtained from £6 or THB 300. I buy wine in The Mall for THB 600 to THB 900 as I like to cook a good meal at home at have a botle of wine as one of life's pleasures. Imported spirits in Thailand are about the same price as the UK so that is acceptable to me. Beer, large bottle, in our local village shop is between THB 45 - THB 50 depending on Brand so cheap compared to the UK. I do not expect the price increases to be as high as quote on this Forum but anything is possible. If the increases are as high as quoted will I reduce my drinking - I doubt it. Maybe I will enjoy it more because something with such a high price tag must be good!

[Barin]

So can someone explain how this affects the free trade agreement with Australia http://www.dfat.gov....y-outcomes.html ??

For agricultural products subject to tariff rate quotas prior to 1 January 2005, Thailand has either eliminated the tariff and quota restrictions or will expand access for Australia over a transition period varying according to the product, before final elimination of the tariff rate quota.

Wine, beer and spirits

• Thailand immediately reduced its previous 54% tariffs on wine to 40%, and will phase the tariff to zero in 2015.
  
• For beer and spirits, Thailand immediately reduced its previous tariffs of 60% to 30%, before phasing to zero in 2010
  

I think that excise is not a tariff.

I think this is supposed to refer to imort duty, not excise tax. Imported alcohol is subject to four taxes: import duty, excise tax, municipal tax and VAT.

Quote:

"Taxing on alcoholic beverages is one of the main and reliable sources of Thai government’s revenue. Typically, people think of alcohol tax only as a form of excise tax, but alcoholic beverages are also subjected to customs duty, local tax, health tax, TV tax and value added tax (VAT). The excise tax liability depends on alcohol classification, their value and the level of alcohol contents. The taxing is further complicated with exclusive and inclusive tax approach embedded for domestically and import products."

What is TV tax? Is it "Thai Visa Tax"?

[MAJIC]

Their reasoning for the extra increase on imported alcohol is that it's much more unhealthy than local alcohol.

No the real reasoning is:Farang have more money and we want it!

[Yo Sup]

Their reasoning for the extra increase on imported alcohol is that it's much more unhealthy than local alcohol.

No the real reasoning is:Farang have more money and we want it!

Straight to the point! With all the price gouging, lies, scams, cheating and racism this place needs a wake up call!

[Thai at Heart]

The alcohol excise tax on rice whiskey was increased from 120 baht a litre to 150 baht a litre based on alcohol content, and for blended liquor from 300 baht to 350 baht per litre. The tax on brandy increased to a maximum of 50 per cent from the existing rate of 48 per cent.

The new rate does not apply to beer or wine, which already face maximum taxes.

source : forbidden in here

Now we know by how much the tax increases, and our mathematicians can calculate by how many Baht the tax increases for their favourite beverages.

Interesting to see that there is no mention of 400 Baht here. Perhaps another publication will talk about yet another rate.

Also interesting is the distinction between "blended liquor" with the excise tax expressed in Baht per litre and "brandy" with a tax expressed in per cent. Makes me wonder into what category a single-malt whiskey falls.

Considering that Thai brandy is rum anyway, it gets even more indecipherable.

Edited August 21, 2012 by Thai at Heart

[WinnieTheKhwai]

There are two separtate taxes to be paid on imported alcohol in every country:

1. The imports tax (according to the imports tariff)
   
2. The excise tax
   

So I don't understand how the retail price of Gilbey's Vodka (imported from the Phlippines) in Tesco Lotus or elswhere can be as low as 320 Baht per 0.7 litre bottle.

There is something tricky here...

Gilbey's Vodka from the Philippines is too sharp for drinking, you may notice this if you drink it straight.

Yes, I have indeed noticed this. It is fairly horrific rocket fuel. Their Gin is a bit better.

Anyway, if the tax was 300 baht / liter alcohol before then the tax on it used to be 300 * 0.7 * 40% = 84 baht.

If anything, the current tax hike will affect more expensive types of liquor less, percentage-wise, than the cheap crap.

[Skywalker69]

Well it wont reduce consumption of either. For the poor it will simply mean less money on the table for food for the children whilst Dad still smokes his tabs and drinks whiskey.

So Thai males usually drink Irish whiskey (with an "e")?

I rather drink it with an.........aahhhhhhh. If it´s Single Malt.

[yourauntbob]

So how will it increase revenue if less is sold at a higher price?

And, a bottle of beer (660ml) is to increase by around 100 baht?

Other than in backward societies were there is no universal healthcare, the system ends up with sky high costs for everything from liver disease to cancer. Best is therefore to have no turnover at all. Cigarette prices should go to the roof and for alcohol the increases are still very modest given the fact that 1 liter of alcohol does not equal one liter of beer.

So how will it increase revenue if less is sold at a higher price?

And, a bottle of beer (660ml) is to increase by around 100 baht?

Other than in backward societies were there is no universal healthcare, the system ends up with sky high costs for everything from liver disease to cancer. Best is therefore to have no turnover at all. Cigarette prices should go to the roof and for alcohol the increases are still very modest given the fact that 1 liter of alcohol does not equal one liter of beer.

I dont understand, Thailand has univeral healthcare but nobody with any money uses it. do you really think these taxes will go into that system or end up lining the pockets of corrupt politicians? alcoholics will buy their alcohol at any price, and if the price gets to high they will start making moonshine which certainly will have more damaging effects to their health.

[Skywalker69]

Good job "dear" Yingluck and PTP. Now you can try to increase the number of tourist ´s coming here.

In an eye-blink people can decide to go somewhere else, once they gone it will dam hard to get them back.

It would be better for Thailand if you and the Government move in with your brother in Dubai.

[Barin]

The heading is deliberately misleading to attract eyeballs. The excise tax rate has not been increased by B400 a litre on imported alcohol. It is has been increased by B400. Since the article doesn't bother to mention what the rate was before, we don't know what the increase is or what the effect will be on retail price. What a load of misinformative rubbish!

For imported alcohol in Thailand the so called "Specific Excise Tax" (Baht per litre) was never applicable.

It is probably incorrect to say something like "400 Baht per litre" as far as imported alcohol is concerned.

For imported alcohol the excise tax is being calculated only Ad Valorem (based on the product value) as far as I know.

For example for beer the excise tax was 60% of the CIF value, please correct me if I am wrong.

[quadrant]

according to the article in one of the newspapers, it says that beer and wine are not to be increased because they are already at the taxable maximum.

therefore, it should only affect the likes of whisky, vodka, tequila, cognac and the likes, no?

cheers

[kimincm]

When they start crying down at the Mum and Pop shop I'll tell them this is the Red Shirt Gov.looking after your well being.You wanted it now you've got it.Chugalug.

[tonglen]

Excellent, the price of alcohol can't be high enough. It's one of the most dangerous drugs in the world, it causes death and mayhem in traffic, spousal abuse and all sorts of aggression. In another thread: "Drunken Swede kills tourist from New Zealand". I am convinced he would not have killed that guy if he were sober!

Agreed that alcohol is a widely used drug. I also agree that there is too much drinking while operating autos.

Caffeine and Nicotine are also commonly used/abused drugs. Should we raise taxes on these because YOU dont like them?

As far as your claim that alcohol is dangerous: unlike smoke, alcohol is metabolized as a food. In moderation, there are NO clinical studies showing alcohol is detrimental to one's health. Not one. MOst studies show that alcohol is a strong anti-oxidant and is beneficial to one's health. Look it up. Read more, blog less.

Drugs are adaptogens - adapting to the innate behaviors of people. You sir, obviously cannot deal with the effects alcohol has on you and for that I am sorry.

However, I personally do not experience alcohol making me overly verbose, obnoxious, causing fights or spousal abuse. Im sorry if you experienced these things growing up, which I assume you did. Spousal abuse occurs even with NON drinkers - which Im sure you realize.

[Barin]

Come on people. Where and when did you learn math? I saw someone saying that an increase of 120 baht on a 500 baht bottle would be 140%. What?

I have no memory of what a beer or a bottle or whisky costs but whatever.

Let's say a domestic 1 litre bottle 40% ABV whisky is 500 baht.

40% of 1 litre = 40cl.

It means that there is 40cl of alcohol in that bottle.

40% of 120baht is 48 baht. (120*0,40)

So that's a whopping 8 baht increase. That bottle would now cost 508 baht. Slow down people.

Or you could just multiply 120 baht by the beverages amount of alcohol. A 5,4% beer would increase by 6,48 baht.

Sorry. I am wrong. My calculations just show what the taxes would be with the new figures, not actual increase.

Sang Som rum cost around 200 Baht in the supermarket. This is a 0.7 litre bottle with 40% alcohol by volume, right?

It falls into the category of "Blended spirits" thus the "Specific Excise Tax" was 300 Baht per litre of 100% alcohol until today. Please correct me if I am wrong.

Let's calculate how much excise tax is in this retail price of 200 Baht.

300 x 0.40 x 0.7 = 84 Baht.

The Nation says the new rate will be 120 Baht per litre, assuming per litre of 100% alcohol.

It means the new rate is much lower than the current rate!

Wow! Good news folks.

As from tomorrow you will be able to buy your favourite Sang Som in Makro for only 150 Baht!

Hurry up until the stocks last...

[tonglen]

The government is (also) hitting the poor again. They know that the poor like to drink beer and whiskey and that a huge percentage of Thais are addicted to one or the other or to both. While the poor should give up smoking and/or drinking, I expect that most will not.

I suppose that the government has to bring in some more income since it is borrowing, spending, and stealing so much.

Nice.... For a botte of red wine costing 500 baths We will now pay 620... 140 % increase !

Do they realise that this is a commercial suicide ?

Well I think its a quite effective remedy to weed out the alcoholic expats and slimeball slugs in the Thai Society who can't make it a day without drinking... The cigarettes should go up much more, I hate smoking......

Ah, yes. Because ALL drinkers are alcoholics, right? Your view is so myopic and miscalculated its a bit humorous. Pardon me while I have a chortle....

Im a social drinker and a NON smoker, but even I think that a tax war on them is absurdly Orwellian.

“If by whiskey you mean the water of life that cheers men’s souls, that smoothes out the tensions of the day, that gives gentle perspective to one’s view of life, then put my name on the list of the fervent wets. But if by whiskey you mean the devil’s brew that rends families, destroys careers and ruins one’s ability to work, then count me in the ranks of the dries."

-Fuller Warren

[Phatcharanan]

Bye bye Thailand, its been fun but over the last 2 years about the only that hasn't increased is my pay packet.....

[Barin]

Now where was that thread about homebrewing..

Homebrewing is illegal in Thailand as in most other countries (except Russia and New Zealand).

[Barin]

The alcohol excise tax on rice whiskey was increased from 120 baht a litre to 150 baht a litre based on alcohol content, and for blended liquor from 300 baht to 350 baht per litre. The tax on brandy increased to a maximum of 50 per cent from the existing rate of 48 per cent.

The new rate does not apply to beer or wine, which already face maximum taxes.

source : forbidden in here

The only post in the thread that is worth reading.

Bravo!

[ozyjon]

Their reasoning for the extra increase on imported alcohol is that it's much more unhealthy than local alcohol.

I completely agree, that batch of whiskey they are making in the back yard is much better than that Johnny Walker

rubbish, that's why so many people drink the locally made brew, it's very cheap too and has multiple used, if it doesn't

get drunk first, stripping paint is my favorite, killing rats, cleaning bugs from the windscreen, oh it can go on for ever.