Thailand: Alcohol excise taxes raised

[webfact]

Alcohol excise taxes raised
The Nation

Effective on September 4, the excise taxes on liquor, beer and wine will go up by 7- 15 per cent.

BANGKOK: -- Somchai Poolsawasdi, director-general of the Excise Department, said that the increases will go into effect immediately to prevent traders from hoarding products to cash in on the higher rates.

The rise in the price of beer is expected to be only Bt2-Bt3 per can, but will be higher for liquor, especially imported whisky.


-- The Nation 2013-09-04

[lee b]

get me a good exchange rate and i really dont care what you do. But alot of ppl do and will go somewhere else around the perimeter of the country for cheapppp booze

[NongKhaiKid]

With a straight face it was announced that this is not a revenue raising move and of course not, no cash strapped government would ever resort to such measures to generate more money to throw at their supporters and keep them on side.

The official excuse is that it's designed to cut down on drinking and for good measure it was also said it was hoped there would be no alcohol consumption during Buddhist Lent. I'll drink to that, if i can afford it.

[GrantSmith]

BANGKOK: -- Somchai Poolsawasdi, director-general of the Excise Department, said that the increases will go into effect immediately to prevent traders from hoarding products to cash in on the higher rates.[/b]

Hahaha he's kidding himself if he thinks that they hadn't already done that...

MODS- is it possible to merge this thread with the previously closed thread?

There's some good info there...

[CelticBhoy]

Somchai Poolsawasdi, director-general of the Excise Department

There's always a Somchai behind every poor decision in this neck of the woods.

[dcutman]

Just another tax on the poor and middle class, where 99% of this revenue will be coming from.

[dudu]

This decision could drive a man to drink...

Edited September 4, 2013 by dudu

[Om85]

That why all religions sucks! Cuz in buddhism drinking is a sin voila: lets increase the tax on alcoholic veverage, why don't the take on prostitutes and let us drink in peace!

[retell]

so if bought alot allready you can sell it for more as a big store ?

looks like again the consumer gets the big bill and the rich get a nice batch of free cash

[jackr]

This country is screwed. It'll never be like it was.

[baboon]

Prices go up and up. Infrastructure is rickety and/or outright dangerous. The law only applies to some. Soon all the average (wo)man on the street will have left is the sun, I fear...

[dudu]

That why all religions sucks! Cuz in buddhism drinking is a sin voila: lets increase the tax on alcoholic veverage, why don't the take on prostitutes and let us drink in peace!

I hope no decision makers take you seriously...

[clockman]

They steal 18-20% of the countries G.D.P. and then want to tax any small pleasure. We wait and wonder!

[Lancelot]

Just another tax on the poor and middle class, where 99% of this revenue will be coming from.

Pity governments don't get what they ask for- no drinking and smoking for that matter...

Tax on alcohol is a real cash cow and demand is largely inelastic so the money keeps rolling in.

Thais are still going to drink and if the alcohol tax becomes too opressive they will brew their own booze (if they already aren't )

[GrantSmith]

They steal 18-20% of the countries G.D.P. and then want to tax any small pleasure. We wait and wonder!

Well how else do you propose they pay it back?

Out of their own pocket?

Hahaha...

These things happen in farangland as well, so why should Thailand be any different?

3-7 baht on the price of a beer, should, to the majority of TVF members, not affect their daily consumption intakes

If it does, well, one should really consider drinking tea..

[baboon]

They steal 18-20% of the countries G.D.P. and then want to tax any small pleasure. We wait and wonder!

Well how else do you propose they pay it back?

Out of their own pocket?

Hahaha...

These things happen in farangland as well, so why should Thailand be any different?

3-7 baht on the price of a beer, should, to the majority of TVF members, not affect their daily consumption intakes

If it does, well, one should really consider drinking tea..

Yes, but there are one or two Thais living here as well who like a tipple...

[habfan]

I'll I can say is I'm glad my heavy boozing days are behind me, it won't really affect me but I still feel for those it does. Funny thing though back in my boozing years they could have doubled the price overnight and I wouldn't have batted an eye.

[chrisinth]

They steal 18-20% of the countries G.D.P. and then want to tax any small pleasure. We wait and wonder!

Well how else do you propose they pay it back?

Out of their own pocket?

Hahaha...

These things happen in farangland as well, so why should Thailand be any different?

3-7 baht on the price of a beer, should, to the majority of TVF members, not affect their daily consumption intakes

If it does, well, one should really consider drinking tea..

The increase in the bars will be either 5 or 10 baht, as they tend to stick to round numbers.............

[meatboy]

Just another tax on the poor and middle class, where 99% of this revenue will be coming from.

its to prevent hoarders,alcohol,lpg and soon the ft.rate on electric.

how do you bottle electric?

[kiwiinasia]

Will my Lao Kao bill at Somchai's Bar & Grill go up?

[muratremix]

get me a good exchange rate and i really dont care what you do. But alot of ppl do and will go somewhere else around the perimeter of the country for cheapppp booze

I recommend Cambodia for heavy drinkers. It is a heaven for drinkers. 1 lt. Jack Daniels Black is only $19.9 USD (little bit less than half price of Thailand) and 1 pack of Marlboro is $1.05 USD. Some food stuff (like Pistachio) is much cheaper even though they are imported from Thailand.

Good thing about Cambodia is USD is the primary currency and ATMs dispense USD.

[grantbkk]

Baccara Soi Cowboy, Bangkok. Before: Almost any beverage, water to whiskey was 160 Baht. Now it's 180 Baht. If not for the boys from the Land of the Rising Sun...

[ginjag]

Baccara Soi Cowboy, Bangkok. Before: Almost any beverage, water to whiskey was 160 Baht. Now it's 180 Baht. If not for the boys from the Land of the Rising Sun...

Even coffee Sth Pattaya, outside bar 3 USD, 6bht to make.

Alternative, 6 pack water 49 bht tesco (1 and half liter bottle)

Thailand has low price on a few things, but nowadays it is getting very expensive.

Please don't post back and say other countries are this /that, we are here so why compare, only we can compare with how it was 2 years ago. Then check back on all things, food-drink-electric-bottle gas etc.

[Mosha]

"The rise in the price of beer is expected to be only Bt2-Bt3 per can, but will be higher for liquor, especially imported whisky.".

Ah more for imported whisky.

As my wife says. If the (the government) were so worried about health. It would be Illegal to make the stuff.

[trainman34014]

The excuse to raise tax on foreign booze is always 'it's more dangerous' (made by evil Farang ). If they could track down and tax the local village distillery's they would have enough income to clear the rice debt in about a month; but all they are doing is encouraging people to open more and help to shorten the lives of their own population.

We know it's all a knee-jerk reaction to the rice debt which is self inflicted but, it's rubber next....so get plenty of stock in before the next tax hike !

[rfukata]

it'll be interesting to see how far these 'sin taxes' will hold until tax revenues begin to decline.

Their must be room to increase - as the govt. has initiated this tax increase in anticipation to study the affects.

[baboon]

it'll be interesting to see how far these 'sin taxes' will hold until tax revenues begin to decline.

Their must be room to increase - as the govt. has initiated this tax increase in anticipation to study the affects.

But then they they would raise the taxes to make up the shortfall...

[timewilltell]

The government has done a couple of things.

Increased the tax ceiling on excise tax collected based on effective alcohol volume from 100 baht per liter to 2000 baht per liter.

Set a tax based on the price of a bottle of wine at 36% of value if the price exceeds 650 baht

Changed the basis of calculation of the latter to the last chain of the sale I.e the shop price from the previous basis of the factory sale price.

For a 660ml bottle of Singha at 5% alcohol by volume that gives 33ml of alcohol x 2 baht per ml = 66 baht 'alcohol tax' up from 33ml x 10 satang = 3.3 baht. So if a bottle of Singha is currently 60 baht it could rise to 126 baht if my numbers are right. However these are ceiling not actual levied rates as yet. Not sure how the levied rates work as I can find no fulsome information.

For a bottle of wine value excluding current tax 600 baht ( mostly the crap I drink ) with a bottle at 70cl or 700 ml and 12% alcohol that would give 700 x 12% = 84 ml of alcohol. 84 x 2 baht per ml = 168 baht. I am assuming the 'retail price' excludes the 'alcohol tax' here in which case the price will rise to 768 baht per bottle.- a 28% rise I think by mental arithmetic as I can't lay my hands on the calculator without losing my post! Maximum rise again not necessarily the actual levy.

If we look at a bottle of say cheap Chablis costing 1200 baht retail before tax then we have:

Alcohol tax the same as above at 168 baht alcohol tax

Plus 'retail tax' at 1200 x 36% = 360+72 = 432 baht

Giving us a tax of 590 baht on top of 1200 baht = 1790 baht. The same wine in the UK which has its own hefty alcohol tax would be about 400 baht about 4.5 times more expensive here!

I know many expats drink boxed wine. Since that is always more than 650 baht I wonder if the ' retail tax' will apply to a pro data bottle equivalent or on the box price - if the latter then forget buying boxes of wine.

If we look at Johnny Walker Black label costing say 1450 baht for a liter at 40% alcohol then alcohol tax will be 400 ml x 2 baht = 800 baht but I am not sure of the retail price tax kicks in for liquor. If it does you would add 1450 x 36% = 435 + 87 = 522 baht for a total tax of 1322 baht on top of 1450 baht = 2772 baht up from 1450 baht.

Now these figures are all wrong anyway because I do not know the ex factory price of a bottle of Chablis or Singha or Johnnie Walker and the prices as of yesterday I assumed were shop prices from which the existing duty must be deducted.

I am also pretty sure the tax on Johnnie Walker will not be raised much as all the hi so drink it. However it does indicate a huge potential tax rise above what were the previous ceilings. It does not bode well for wine drinkers because it targets imported wines which most Thais could not give a toss about but which a fair few tourists might drink as well as many expats.

This is an obvious method to generate income to cover the corruption of this government and the usual 'target the foreigners most' mentality is again evident. Many Australian wineries might be a little miffed having been benefiting from the trade agreement for a couple of years now to be hit with this.

It is interesting to note that any business which Thais do not engage in are hugely taxed here because most of the locals don't eat them hence no impact on votes when cheese is taxed to several thousand baht a kilo.

It is getting very expensive to live in Thailand and enjoy the few things you miss from home like wine and cheese, English Mustard and HP sauce which might be a good thing if I can change and just drink water and eat rice - maybe given e rice mountain that is what the government seeks. I think rather it is just to refill the governments coffers for anger corrupt gouging to pay for the upcoming rice crop guaranteed price of 15,000 baht for plain and 20,000 baht for Hom Mali rice - or perhaps ey are going to try to get some more southern votes by buying rubber at 20,000 baht per ounce and sell it to the Chinese at 200 baht a kilo - ha ha

[deecee10]

So excise tax will go up by 7-15%.

How much is the excise tax now?

How much extra will there be on a bottle of imported scotch?

[silopsist]

I hate the way governments always try to make out they are worried about our health and trying to cut demand knowing full well that alcohol has a relatively inelastic demand curve. Further more the fact that imported spirits go up the most and local beer and spirits the least would suggest, no sorry prove...........they couldn't give a toss about health and more about profit for local producers which no doubt benefits them somehow.

Studies have shown local whiskey and beet to be far more damaging than imported whiskeys so why not bring the taxes inline if they are so worried about everybodies health.

I think this is more about changing habits, forcing more people onto local brands.

Edited September 4, 2013 by silopsist