Thai Senate OKs alcohol tax rise

[webfact]

Senate OKs alcohol tax rise

BANGKOK, 24 September 2013 (NNT) - The Senate has unanimously approved the alcohol tax increase with some Senate members expressing concerns that it might benefit entrepreneurs rather than the country.

The Senate on Monday voted 99 to 8 in favor of the alcohol tax increase after many Senate members debated on the matter. Senator Khamnoon Sitthisamarn expressed his suspicion that the tax hike might be a tool to benefit producers of alcoholic beverages.

Meanwhile, Senator Tuang Anthachai said if the tax rise was sincerely aimed at cutting alcohol consumption, the government should provide support for private organizations which were holding anti-alcohol campaigns.

Statistics suggest that the government had the total revenue of 110 billion baht from alcohol and beer taxes in 2011 and 2012. The 2013 revenue is expected to increase by around eight billion baht after the new alcohol tax rate takes effect.


-- NNT 2013-09-24

[jackr]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

[Tatsujin]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

I want to know which of those Senators have a vested interest in alcohol production . . .

[jaltsc]

"Senator Khamnoon Sitthisamarn expressed his suspicion that the tax hike might be a tool to benefit producers of alcoholic beverages."

Look for some creative accounting from the alcohol producers and and large chain stores. I am sure the government will show off the lower sales of alcohol to prove that the tax is working, while the managers and executives of both the producers and chain stores will be riding around in brand new luxury sedans...Drunk, of course

[monkey4u]

Is this the price rise from a couple of weeks ago or a new one

[samran]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

I want to know which of those Senators have a vested interest in alcohol production . . .

Probably the 8 who didn't vote for the tax increase?

Raising taxes sure isn't going to help the industry now is it?

[Tatsujin]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

I want to know which of those Senators have a vested interest in alcohol production . . .

Probably the 8 who didn't vote for the tax increase?

Raising taxes sure isn't going to help the industry now is it?

Any tax increase will be accompanied by a corresponding price increase. So no, it's not the 8 that didn't vote.

[Neilly]

Is this the price rise from a couple of weeks ago or a new one

Same one...maybe now they can send some beer down here...supplies have just about dried up because they wouldn't send any until the tax hike was agreed

[Pib]

Is this the price rise from a couple of weeks ago or a new one

Same one...maybe now they can send some beer down here...supplies have just about dried up because they wouldn't send any until the tax hike was agreed

I've noticed the same thing....the Lotus and Makro stores I visit have been almost completely out of beer for the last few weeks except maybe getting an occasional shipment of Leo or some import beers.

[h90]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

The good wine for the Senators and Chalerm.....the poor masses should drink homebrew lao kao.....

Exactly the opposite of what the reds and ptp told before election....

[samran]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

I want to know which of those Senators have a vested interest in alcohol production . . .

Probably the 8 who didn't vote for the tax increase?

Raising taxes sure isn't going to help the industry now is it?

Any tax increase will be accompanied by a corresponding price increase. So no, it's not the 8 that didn't vote.

A price increase, if one comes about, will be the extent of the new tax. Or are you saying that the companies will raise their prices by the amount of tax, and then some?

[laurentbkk]

raising taxes on alcohol never helped the people to stop drinking . it will develop only some Home made alcohol which are more dangerous than anything else. good we still have a lot of good prices duty free to fill up our homes.

[Tatsujin]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

I want to know which of those Senators have a vested interest in alcohol production . . .

Probably the 8 who didn't vote for the tax increase?

Raising taxes sure isn't going to help the industry now is it?

Any tax increase will be accompanied by a corresponding price increase. So no, it's not the 8 that didn't vote.

A price increase, if one comes about, will be the extent of the new tax. Or are you saying that the companies will raise their prices by the amount of tax, and then some?

Call me cynical but yes, I would hazard a guess and say alcohol prices will increase by the tax amount + a little extra ...

[nong38]

Is this the price rise from a couple of weeks ago or a new one

I think its the one that was implemented locally in the mum and dad shops 2 weeks before it was announced by the Govt. The extra revenue would of course be sent to the Govt in due course.

Edited September 24, 2013 by nong38

[nong38]

Nothing to do with cutting consumption and all about raising revenue, all countries are the same and the tax hits the poorest in society indiscriminately everytime.

[Mampara]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

Guys earning 300 baht or less shouldn't be drinking alcohol, because it would burn up the few brain cells left.

[phantomfiddler]

How can they have just approved it when it went into operation almost 3 weeks ago ? Does this mean it,s going to jump ap AGAIN following the recent large jump in beer prices ? Soon there will be a mass exodus of drinking tourists, methinks

[Ulic]

With a 99-8 senate vote I don't think the author knows the meaning of the word "unanimously"

[nong38]

I am in Nakhon Sawan, everywhere I go I see almost empty fridges where the beer used to be, Makro only had Leo last thursday. What is it like where you are? I heard that brewing had stopped at the main breweries as a protest against the tax rise.

[BlackJack]

red wine health benefits overlooked as my wine went up 200 baht already

[kuiburi]

In most European country's beer in the supermarkets is way cheaper then in Thailand . The small family shops in Thailand make only a few baht profit on a can or botlle .

Like most things sold in Thailand the profit goes to the factory owners and the midlle men .

Raising tax on alcohol will not make people stop drinking . Only fills pockets under the elite .

[nong38]

red wine health benefits overlooked as my wine went up 200 baht already

I heard that Blend 285 ( whiskey ) had gone up a mere 10bts, govt tax levies move in mysterious ways and has nothing to do with health as BlackJack has just confirmed.

[GrantSmith]

This is not a new tax rise on alcohol, but the Senates approval of the proposal that was announced - without notice - on September 4.

Numerous topics about this on the various sub forums here, suffice to say supply has halted somewhat because, IMO, the wording used in the application of the tax equation is ambiguous (to say the least) and the department responsible for the collection and creation of taxes do themselves no favors by saying one thing and doing another.

Taxation Accountants and taxation lawyers/attorneys/solicitors/barristers will be making a fortune out of this in a few months as they to come to terms with the ambiguity of this new equation and exploit the short comings of it.

[timjonespserve]

Increased by what %?

[samran]

This is not a new tax rise on alcohol, but the Senates approval of the proposal that was announced - without notice - on September 4.

Numerous topics about this on the various sub forums here, suffice to say supply has halted somewhat because, IMO, the wording used in the application of the tax equation is ambiguous (to say the least) and the department responsible for the collection and creation of taxes do themselves no favors by saying one thing and doing another.

Taxation Accountants and taxation lawyers/attorneys/solicitors/barristers will be making a fortune out of this in a few months as they to come to terms with the ambiguity of this new equation and exploit the short comings of it.

Indeed.

My intel is that this is all about getting back at ThaiBev, who are getting a bit uppity and not paying due homage to dear leader. The tax rise was to show ThaiBev, and Khun Charoen, who is boss.

The slipshod application of the new calculation tells me that this new law is an adhoc order upon high, and the MOF (usually some of the best civil servants going around) are left trying to figure out how to calculate a policy which takes time to work through and develop.

[GrantSmith]

Increased by what %?

It's dependant on numerous factors including (but not limited to): type of alcohol, alcoholic percentage, selling price.

No longer ad volerm, now a floating rate per se...

[GrantSmith]

Indeed.

My intel is that this is all about getting back at ThaiBev, who are getting a bit uppity and not paying due homage to dear leader. The tax rise was to show ThaiBev, and Khun Charoen, who is boss.

The slipshod application of the new calculation tells me that this new law is an adhoc order upon high, and the MOF (usually some of the best civil servants going around) are left trying to figure out how to calculate a policy which takes time to work through and develop.

Have heard the same musings... However, Khun Charoen made his bed and should be made to sleep in it.

Perhaps the karma fairy paying him a visit? Unfortunately the karma fairy has taken no prisoners in the dispensing of vengence and retribution.

Nevertheless, the result of this, is a rushed calculation with the "we'll make it up as we go along" tune playing wildly in the back halls of the parliament offices.

[Soi Sauce]

Is this tax rise, that will hit the poor more than the rich, being made to make up for the income the government will lose when they cut the tax on luxury products so they and their rich mates can buy more of them?

PTP for the working people? You jest!

Edited September 24, 2013 by Soi Sauce

[winstonc]

Well it was hardly gonna come back down again. But, I wonder, would these senators be voting so in favour if they actually had to pay for their alcohol, like the guy earning 300 baht (or less)?

Guys earning 300 baht or less shouldn't be drinking alcohol, because it would burn up the few brain cells left.

rather cruel dont you think....earning 300 baht or less doesnt make someone automatically thick...neither funny or well thought out...

[spirit47]

Selfmade Alcohol will flood the markets.