Hike In Excise On Cigarettes And Liquor Backed: Thailand

[necronx99]

Absolute madness that they tax it on a calculation of pure alcohol per litre.

?

Taking the pure alcohol is the only (and standard) way of doing it sensibly.

it is the alcohol that is taxable, not the other ingredients that go into making the drink.

[necronx99]

Lao Khao and Sangsom up!, that's gonna be a hard sell up in Dear Leaders heartland.

Good thing they gave them all those credit cards.

[bigbamboo]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

Note to smugglers: Get yourselves out to Tas now!

[kennalder]

I see that yesterday's shoot from the hip thread "Shock Rise On Imported Alcohol by 400 baht a litre" that generated loads of hits and 11 pages of comment came to a sticky end after it was revealed that there is actually no change in the excise duty. Nice one.

And guess what? Now we get to start a whole new thread! It never ends.

[trainman34014]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

I live in the sticks and around my way the local gut rot is not normally sold but consumed by anyone who happens to be in the vacinity when it's put on the table; which is nightly. There are a lot of people making it in the villages and there is never a shortage as they share it between themselves.

As for Rice Wine; well that's easy and I make my own, it's not Rocket Science.

[Amras]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

Smoking is a horrible habit that is a. much more addictive than drinking b. much more likely to causes serious health issues and c. costs the government a hell of a lot in medical treatment, from everything from general lung conditions to cancer. Add to that the effect of passive smoking and there is a huge reason to ban it/get rid of it.

It should be banned, I hate smoking and when other people smoke it affects me. When people drink it doesn't affect others.

[Katipo]

No matter how high governments choose to tax cigarettes, I will never complain.

[jonb1942]

Greed for the lack of a better word is good for the country.

[Moruya]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

I live in the sticks and around my way the local gut rot is not normally sold but consumed by anyone who happens to be in the vacinity when it's put on the table; which is nightly. There are a lot of people making it in the villages and there is never a shortage as they share it between themselves.

As for Rice Wine; well that's easy and I make my own, it's not Rocket Science.

Just rocket fuel.

Be careful with the methanol

[gabruce]

Another "hidden" tax imposed mainly on the poor who can least afford it.

What are you talking about? How is it more hidden than any other tax? And it's announced in all the papers and on TV; what more could they possibly do?

Also, the poor just got a big raise in minimum wage, and money is also thrown at rice farmers. In return, they (along with everybody else) can pay a bit extra for non essential luxuries like liquor and cigarettes, which by the way also cause health issues that the government largely pays for when it comes to the poor. So it makes PERFECT sense, especially if you subscribe to the more social-democratic part of the political spectrum.

By definition it is hidden because the tax amount isn't labelled on the product or added separately on a receipt. I suspect that few people memorize the amount of tax in things that they consume, or are able to calculate it on the fly even if they know it. I also don't quite get the %value and tax per litre of pure alcohol - are they combined? which is applied first if combined? Either way it just looks like a lot, and as a hidden tax the exact amount will be forgotten in a month or so (faster by me since I have a poor long-term memory).

[Barin]

Absolute madness that they tax it on a calculation of pure alcohol per litre.

What is wrong with that?

This is a standard practice everywhere in the world...

The excise tax rates are given for 1 litre of 100% alcohol.

Then we need to calculate how much pure alcohol is contained in the bottle of whiskey or vodka.

For example "Sugroboff Vodka" (made in Thailand) is 40% alcohol by volume, the bottle is 0.75 litre.

Let's calculate how much pure alcohol is contained there in one bottle: 1 x 0.40 x 0.75 = 0.3 litres of pure alcohol

The old excise tax: 120 x 0.3 = 36 Baht

The new excise tax: 150 x 0.3 = 45 Baht

The difference is 9 Baht per bottle (0.75 litre)

Thus the retail and whoilesale price will be increased by 10 Baht as from today.

The new retail price will be 259 Baht per bottle (0.75 litre).

Please don't forget that besides excise tax there are also 4 other taxes to be paid on alcohol in Thailand. All these taxes are included in the retail price and are burdened by the final consumer (the drinker):

• Local Tax (10%)
  
• Thai Health Tax (2%)
  
• Thai PBS Tax (TV Tax, 1.5%)
  
• VAT (7%)
  

What is PBS tax?

PBS stands for "Public Broadcasting Service"

Although Thai PBS produces content for television, radio, and website, it is best known for its flagship

television service, called “TV Thai”. Thai PBS’s financial independence is ensured by an earmarked tax of 1.5

percent on tobacco and alcohol sales, known as the “sin tax”, with a ceiling of THB 2 billion per year.

[sunshine51]

On a petty note, the Scots do not produce whiskey, I believe that is the Irish and Americans product.

Ummmm, yeah, ok....

http://en.wikipedia....i/Scotch_whisky

OK,thanks.

http://grammarist.co...whiskey-whisky/

However....never call a single malt either...that could get ya hurt anywhere

in Scotland Jimmy! Just call it by the distilleries name or..."single malt".

I prefer a 25 year old Isley....but it ain't pronounced as it's spelled fyi.

[alant]

does this include ASEAN product?, I am unsure if they are an overseas product? Not that it matters too much it seems Scotch is going up. Mind you the Scots are also good at nationalism and protectionism and may well look to add duty to Thai products

[RogueExpat]

Another "hidden" tax imposed mainly on the poor who can least afford it.

What are you talking about? How is it more hidden than any other tax? And it's announced in all the papers and on TV; what more could they possibly do?

Also, the poor just got a big raise in minimum wage, and money is also thrown at rice farmers. In return, they (along with everybody else) can pay a bit extra for non essential luxuries like liquor and cigarettes, which by the way also cause health issues that the government largely pays for when it comes to the poor. So it makes PERFECT sense, especially if you subscribe to the more social-democratic part of the political spectrum.

Oh dear!

Of course all taxes are not hidden, if you bother to pull out your RD tax book whenever you decide to purchase some goods or services.

However, most don't own a copy of this, and as such would be hard pressed to tell you how much tax is levied, and by which department, on any goods or services they are interested in.

And in this case, where the largest hike appears to be imposed on Lao Khao, it seems that the poor rice farmers, who incedently are not seeing the benefits of this government's vote buying schemes in price controls according to other topics on this website, are going to be hardest hit unless they moderate the drinking.

Wake up and smell the roses.

[Ron19]

Another "hidden" tax imposed mainly on the poor who can least afford it.

What are you talking about? How is it more hidden than any other tax? And it's announced in all the papers and on TV; what more could they possibly do?

Also, the poor just got a big raise in minimum wage, and money is also thrown at rice farmers. In return, they (along with everybody else) can pay a bit extra for non essential luxuries like liquor and cigarettes, which by the way also cause health issues that the government largely pays for when it comes to the poor. So it makes PERFECT sense, especially if you subscribe to the more social-democratic part of the political spectrum.

It all sounds a bit like a dog chasing it's tail and will do nothing at all to reduce alchohol consumption.

[peterdk]

New cigarrette price in 7-Eleven.

LM 90 Baht / pack - up from 58 Baht / pack. A rise of 32 baht or ~ 55% increase in cost.

Marlboro 90 Baht / pack - up from ( Im not 100% sure ) 65 baht / pack. A rise of 25 baht or ~ 38% increase in cost.

The 7-Eleven I just visited was located in Rawai, Phuket.

[Barin]

Doubtful the tax will apply to rotgut moonshine (40% alcohol) sold in most mom & pop stores throughout Thailand. Top Bananas in Bkk probably figure, "Well, if they're so pissed-in-their-pants drunk that they can barely hobble down the street, they can't be a political threat to us, can they?"

This is called "Ruang Khao" and is produced by the giant company "Thai Bev" (number one alcohol producer in Thailand, the same company that is making your favourite "Sang Som" whiskey and "Chang" beer.

The "rotgut moonshine" is not sold in Thailand, this is too risky!

And it is not worth it, legal moonshine in the form of "Ruangkhao" is dirt cheap in Thailand.

[Barin]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

Currently nobody in Thailand is making illegal "rot gut" as the legal white rum is produced by the giants like "Thai Bev" and sold at rock bottom prices in any supermarket, just take a look at the shelves!

This is too risky nowdays to make alcohol without license in Thailand...

[Thai at Heart]

Absolute madness that they tax it on a calculation of pure alcohol per litre.

?

Taking the pure alcohol is the only (and standard) way of doing it sensibly.

it is the alcohol that is taxable, not the other ingredients that go into making the drink.

Hardly when half of the products come out of the still at purity and are diluted, whilst others are made through natural fermentation? If they want to produce a system that encourages certain types of consumption over others, so called Thai and western whiskeys need to reflect the alcohol concentration at the bottle so that they are reduced in consumption and say beers and wines are taxed according to their alcohol value in the bottle.

The industry in Thailand is so massively skewed towards hard spirits because there is a massive player in town who has hold of the market. If the point is to discourage consumption of alcohol, spirits have to go up and the way to do this is to reflect that in the price at the bottle per concentration of alcohol. Never going to happen, but that is what "should" happen.

[Ron19]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

Currently nobody in Thailand is making illegal "rot gut" as the legal white rum is produced by the giants like "Thai Bev" and sold at rock bottom prices in any supermarket, just take a look at the shelves!

This is too risky nowdays to make alcohol without license in Thailand...

Unfortunately it still happens though and I have only tried it once.Never again.By the way,I have never seen it sold.It usually fronts up at party time such as weddings,inaugurations,etc. Edited August 22, 2012 by Ron19

[peterdk]

Family Market cigarette pricing.

LM was still 58 baht / pack and they suggested they would change the price within one week.

Marlboro was 78 baht / pack ( was that the old price ? )

Noticed a small bottle of Sangsom priced at 138 baht new price or old, dont know.

So it seems in Rawai, Phuket at least, that it would be stupid to purchase cigarettes at 7-Eleven.

[Barin]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

I live in the sticks and around my way the local gut rot is not normally sold but consumed by anyone who happens to be in the vacinity when it's put on the table; which is nightly. There are a lot of people making it in the villages and there is never a shortage as they share it between themselves.

As for Rice Wine; well that's easy and I make my own, it's not Rocket Science.

Just rocket fuel.

Be careful with the methanol

Probably the so-called "Sato" (rice wine) contains some methyl alcohol and much acethyl aldehydes, I am not surprised.

I would not recommend drinking "Sato"...

[OzMick]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

I live in the sticks and around my way the local gut rot is not normally sold but consumed by anyone who happens to be in the vacinity when it's put on the table; which is nightly. There are a lot of people making it in the villages and there is never a shortage as they share it between themselves.

As for Rice Wine; well that's easy and I make my own, it's not Rocket Science.

Just rocket fuel.

Be careful with the methanol

Probably the so-called "Sato" (rice wine) contains some methyl alcohol and much acethyl aldehydes, I am not surprised.

I would not recommend drinking "Sato"...

Drinking it? I wouldn't recommend using it (or lao Khao) for degreasing an engine.

[Ron19]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

I live in the sticks and around my way the local gut rot is not normally sold but consumed by anyone who happens to be in the vacinity when it's put on the table; which is nightly. There are a lot of people making it in the villages and there is never a shortage as they share it between themselves.

As for Rice Wine; well that's easy and I make my own, it's not Rocket Science.

Just rocket fuel.

Be careful with the methanol

Probably the so-called "Sato" (rice wine) contains some methyl alcohol and much acethyl aldehydes, I am not surprised.

I would not recommend drinking "Sato"...

Apoligies re post #53.This " Sato " is most likely the one I've sampled.Definately rocket fuel.

[how241]

A bottle of sang som for anyone who can interpret the graphic correctly.

+1--Hard to understand what will be the new prices.

[kawaiimomo]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

I just bought a Marlboro gold in a 7/11. Yesterday it was 78 THB, today 90 THB. Not 6-8 baht but 12. Still cheaper than in the west but my salary is also lower here :-P

[Moruya]

On a petty note, the Scots do not produce whiskey, I believe that is the Irish and Americans product.

Ummmm, yeah, ok....

http://en.wikipedia....i/Scotch_whisky

OK,thanks.

http://grammarist.co...whiskey-whisky/

However....never call a single malt either...that could get ya hurt anywhere

in Scotland Jimmy! Just call it by the distilleries name or..."single malt".

I prefer a 25 year old Isley....but it ain't pronounced as it's spelled fyi.

A good Lagavulin warms the cockles of the heart to be sure. Probably more so than a dusky maiden from I Lay!

[scotbeve]

On a petty note, the Scots do not produce whiskey, I believe that is the Irish and Americans product.

Ummmm, yeah, ok....

http://en.wikipedia....i/Scotch_whisky

Hint.... the spelling....

[Moruya]

Drinking it? I wouldn't recommend using it (or lao Khao) for degreasing an engine.

I'm going to experiment with my BBQ.

Overnight soak in Coca Cola versus Lao Khao

The next door neighbour's cat can have the residue for defecating in my garden

[Moruya]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

I live in the sticks and around my way the local gut rot is not normally sold but consumed by anyone who happens to be in the vacinity when it's put on the table; which is nightly. There are a lot of people making it in the villages and there is never a shortage as they share it between themselves.

As for Rice Wine; well that's easy and I make my own, it's not Rocket Science.

Just rocket fuel.

Be careful with the methanol

Probably the so-called "Sato" (rice wine) contains some methyl alcohol and much acethyl aldehydes, I am not surprised.

I would not recommend drinking "Sato"...

Fusel oils are no longer viewed as a threat I guess