More alcohol tax evasion cases after booze tax hike

BANGKOK, 18 October 2013 (NNT) - The Excise Tax Department has reported that there have been thousands of cases of alcohol tax evasion after alcohol tax was increased last month.

According to Director-General of the Excise Tax Department Somchai Poonsawat, there have been over 30,000 cases related to alcohol tax evasion, with a total of 235,000 liters of liquor seized during the 2013 fiscal year. The total fine was worth 91 million baht.

Since alcohol tax was increased on 4 September 2013, the department has filed more than 2,800 cases, confiscating over 14,000 liters of liquor as evidence.

The department has asked excise tax provincial offices to inspect alcohol and tobacco shops, especially those located near schools, religious places and gas stations. No alcohol and tobacco distribution licenses are to be issued to shops in those areas.


-- NNT 2013-10-18

Live and learn Thailand.

Drive up the black market/rate of smuggling in booze etc. How about the R.D. taxing more than merely 5-8 million middle class taxpayers, or whatever elusive, astoundingly minimal number it is, and applying some application of functional tax systems from abroad?

Live and learn Thailand.

Live? -- yes, always

Learn? -- no, never

Errr yes, what a surprise

If alcohol is too expensive there will of course be a bigger black market and more "home distilleries" will come up. What´s even worse is that there might be more adulterated alcohol, dangerous for your life.

There was a time when tourists in Turkey got poisend by the row, even hotel bars had bought the bad stuff. Though Thailand hasn´t had such problems yet? At least i haven´t heard of.

Edited October 18, 201312 yr by I knew this would happen

Drive up the black market/rate of smuggling in booze etc. How about the R.D. taxing more than merely 5-8 million middle class taxpayers, or whatever elusive, astoundingly minimal number it is, and applying some application of functional tax systems from abroad?

I think Thailand has the same problem Greece has, it´s hard to find any Greek guy officially earning more than 100K € per year. All these villas, Ferraris, yachts must belong to someone else.

Edited October 18, 201312 yr by I knew this would happen

" 30,000 cases related to alcohol tax evasion, with a total of 235,000 liters of liquor seized during the 2013 fiscal year. ... Since alcohol tax was increased on 4 September 2013, the department has filed more than 2,800 cases, confiscating over 14,000 liters"

according to these figures, there was less tax evasion and substantially less confiscations since tax increase

That is 8(EIGHT) litres per case filed.

Obviously major crime figures at work here so keep up the good work boys.

My 3 litre box of wine jumped from 800 Baht to 1100 Baht in a week. That's just ridiculous. I understand things go up but 300 Baht?

90 million baht and 30,000 individual cases. Do the maths, hardly an enormous deterrent is it.

Maybe if the fines became a little more realistic, people might consider abiding rather than laughing at the law.

Counterfeit booze is already available for sale. No longer a hypothetical.

Errr yes, what a surprise

If alcohol is too expensive there will of course be a bigger black market and more "home distilleries" will come up. What´s even worse is that there might be more adulterated alcohol, dangerous for your life.

There was a time when tourists in Turkey got poisend by the row, even hotel bars had bought the bad stuff. Though Thailand hasn´t had such problems yet? At least i haven´t heard of.

It is quite common here. Dodgy bars and clubs make their own and pour it into "legit" bottles. Gives you a nasty hangover.

Doubt bars or clubs make their own. Not that easy to get anything like the quality right.

You only have to taste what the legit distileries produce.

I know it goes on up in Isaan and they will drink anything. Sometimes with fatal results.

Errr yes, what a surprise

If alcohol is too expensive there will of course be a bigger black market and more "home distilleries" will come up. What´s even worse is that there might be more adulterated alcohol, dangerous for your life.

There was a time when tourists in Turkey got poisend by the row, even hotel bars had bought the bad stuff. Though Thailand hasn´t had such problems yet? At least i haven´t heard of.

It is quite common here. Dodgy bars and clubs make their own and pour it into "legit" bottles. Gives you a nasty hangover.

Raising alcohol taxes just creates more opportunity for corruption. You can bet there are some well known people blatantly and openly filling their pockets.

Alcohol scams will now add to the rice scams.

That is 8(EIGHT) litres per case filed.

Obviously major crime figures at work here so keep up the good work boys.

Clearly math isn't their strong point...

Then again, neither is education for they'd be able to figure out how much money they should be making,

giving citations to all those smart looking , motorcycle drivers, cruising around without helmets on.

The law has only been in effect since 2000...

Personally I thought it was great when you could pull up,

and top off the tank with petrol,

run in the quick stop,

get a few beers,

stop by the restrooms,

drain the lizard,

and be on your way down the road.

Oh how life has changed in LOS's.

Those were truly the days.

"The department has asked excise tax provincial offices to inspect alcohol and tobacco shops, especially those located near schools, religious places and gas stations. No alcohol and tobacco distribution licenses are to be issued to shops in those areas."

Im sure there is a 7-11 near every one of those locations, and dont they sell tobacco at every gas station?

Two of the richest people in Thailand are the owners of Singha and Beer Chaang. They either LOVED this tax, or hated it. Think about what's going on, and answer the question 'Did they like or hate this tax?'

Think about who knew this tax was going to hit, and what actions they must have taken once they were aware of about a 15% increase in the price of something before it would happen. That is a HUGE return on your $$.

Doubt bars or clubs make their own. Not that easy to get anything like the quality right.

You only have to taste what the legit distileries produce.

I know it goes on up in Isaan and they will drink anything. Sometimes with fatal results.

Proof?

That is 8(EIGHT) litres per case filed.

Obviously major crime figures at work here so keep up the good work boys.

Clearly math isn't their strong point...

Then again, neither is education for they'd be able to figure out how much money they should be making,

giving citations to all those smart looking , motorcycle drivers, cruising around without helmets on.

The law has only been in effect since 2000...

Personally I thought it was great when you could pull up,

and top off the tank with petrol,

run in the quick stop,

get a few beers,

stop by the restrooms,

drain the lizard,

and be on your way down the road.

Oh how life has changed in LOS's.

Those were truly the days.

What has changed where you live?

Errr yes, what a surprise

If alcohol is too expensive there will of course be a bigger black market and more "home distilleries" will come up. What´s even worse is that there might be more adulterated alcohol, dangerous for your life.

There was a time when tourists in Turkey got poisend by the row, even hotel bars had bought the bad stuff. Though Thailand hasn´t had such problems yet? At least i haven´t heard of.

It is quite common here. Dodgy bars and clubs make their own and pour it into "legit" bottles. Gives you a nasty hangover.

Raising alcohol taxes just creates more opportunity for corruption. You can bet there are some well known people blatantly and openly filling their pockets.

Alcohol scams will now add to the rice scams.

The Thai government make a lot a very lot on tax's why raise the alcohol and tobacco the poor people in Thailand enjoy their little triple and a smoke it just gets harder for them to have a little enjoyment, god bless them.

The government needs to stop spending money on stupid ideas.

That is 8(EIGHT) litres per case filed.

Obviously major crime figures at work here so keep up the good work boys.

Clearly math isn't their strong point...

Then again, neither is education for they'd be able to figure out how much money they should be making,

giving citations to all those smart looking , motorcycle drivers, cruising around without helmets on.

The law has only been in effect since 2000...

Personally I thought it was great when you could pull up,

and top off the tank with petrol,

run in the quick stop,

get a few beers,

stop by the restrooms,

drain the lizard,

and be on your way down the road.

Oh how life has changed in LOS's.

Those were truly the days.

Newfoundland, where every gas station store shop is stocked floor to ceiling with beer.

Doubt bars or clubs make their own. Not that easy to get anything like the quality right.

You only have to taste what the legit distileries produce.

I know it goes on up in Isaan and they will drink anything. Sometimes with fatal results.

Proof?

Probably about 40 for an imported whisky before opening.

About 30 by the time the water has been added.....

Didn't the original notices about this HUGE tax hike say that it was all about health? As in, it now costs so much, you'll all drink less, and be able to live up to a Buddhistic ideal?

It is the nature of taxes to always go up, but this was a big bite. It's for our own good, though.

Didn't the original notices about this HUGE tax hike say that it was all about health? As in, it now costs so much, you'll all drink less, and be able to live up to a Buddhistic ideal?

It is the nature of taxes to always go up, but this was a big bite. It's for our own good, though.

FWIW, I like drinking more than the next guy, and I support an alcohol tax. I'm just skeptical of how much is being smuggled, and how much is actually getting taxed. I have a hard time believing they'd tell the two wealthiest people in thailand they're gonna put a big dent on their business, unless...................

Where do they get the manpower to prosecute 30,000 plus cased of tax evasion? Will the fines they collect pay for the huge army of prosecutors and court costs involved in prosecution? How many years will a defendant have to wait before his case gets to trial? What is the net benefit to the country? I don't drink alcohol but I wonder if this is a good way to raise revenue or, if they are concerned about the public's health, won't it drive them to the more bang-for-the-Baht, but more damaging, Lao Khao?

I am dodging the alcohol tax hike by drinking less.

Bored stupid!

I am dodging the alcohol tax hike by drinking less.

Bored stupid!

I am drinking less because the local beer quality is too bad to drink.

Wine/imported beer/spirits are too heavy taxed.....

What were the bozos expecting... that people would actually line up to pay the HIGHER tax because they prefered it to the previous lower rate?

When you pass this kind of fee collection, you have to be more intelligent than those the fee collection is aimed at.

The difference in LPG tax, for home or vehicle use, diesel fuel tax, imported car/parts tax etc, etc. The people running this country cannot see past the end of their nose, or their personal bank account and have been shown time and again their incompentance in legislating laws, monitoring their implentation, eforceing the intent, bring legal proceedings against offenders, etc.

When you pass this kind of fee collection, you have to be more intelligent than those the fee collection is aimed at.

The difference in LPG tax, for home or vehicle use, diesel fuel tax, imported car/parts tax etc, etc. The people running this country cannot see past the end of their nose, or their personal bank account and have been shown time and again their incompentance in legislating laws, monitoring their implentation, eforceing the intent, bring legal proceedings against offenders, etc.

I am sure Thaksin can see past his personal bank account. He doesn't want to.

It is not incompetence.