Green tea, fruit juice drinks to face 10-20% excise tax

[chiang mai]

The partial quote below from this Nation as this new article says it all...it's to expand the country's tax base; it's got nothing to do with benefiting anyone or any group other than the government's tax revenue.  It's just a tax increase, pure and simple.

 

The new excise tax on beverages is proposed to be imposed according to sugar content, to expand the country's tax base.

 

 

 

If you want to base your opinion solely on a single newspaper article, that's fine. On the other hand, if you've actually visited the tea "gardens" in the North you might have a different and and slightly informed view. Another aspect of course is that Pokka, the Singaporean maker of sugar free green tea, I'll repeat that, sugar free green tea, is one of the biggest suppliers of tea into Thailand.

[AnotherOneAmerican]

It's just no logical - they should start with coke and pepsi in this case.

 
They have already an 25% excise tax.

So why are coke and pepsi still the cheapest drinks on the market?

[Prbkk]

This is a good counter to the merchants of disease and premature death who have been masquerading as "healthy". This stuff is "poison" if one accepts the arguments of Robert Lustig re the sugar industry. I do. Leave the healthy drinks alone (water) , real tea, coffee but certainly tax these fakers.

[Pib]

 

The partial quote below from this Nation as this new article says it all...it's to expand the country's tax base; it's got nothing to do with benefiting anyone or any group other than the government's tax revenue.  It's just a tax increase, pure and simple.

 

The new excise tax on beverages is proposed to be imposed according to sugar content, to expand the country's tax base.

 

 

 

If you want to base your opinion solely on a single newspaper article, that's fine. On the other hand, if you've actually visited the tea "gardens" in the North you might have a different and and slightly informed view. Another aspect of course is that Pokka, the Singaporean maker of sugar free green tea, I'll repeat that, sugar free green tea, is one of the biggest suppliers of tea into Thailand.

 

No, I just believe the news article is right on target...it's purely a tax increase.  Let's turn sugar-based drinks into the next "sin tax" tax gold mine/target.  It's simply a tax increase.

[Nuddy]

My Thai wife drinks the Green tea mentioned in the OP and other places in the comments.

She is now annoyed that her healthy green tea is to be taxed more.

I imagine other Thais in the market place too may protest.

 

[belg]

why not a sugar tax on all overloaded soda's?

 

 

[chiang mai]

 

 

The partial quote below from this Nation as this new article says it all...it's to expand the country's tax base; it's got nothing to do with benefiting anyone or any group other than the government's tax revenue.  It's just a tax increase, pure and simple.

 

The new excise tax on beverages is proposed to be imposed according to sugar content, to expand the country's tax base.

 

 

 

If you want to base your opinion solely on a single newspaper article, that's fine. On the other hand, if you've actually visited the tea "gardens" in the North you might have a different and and slightly informed view. Another aspect of course is that Pokka, the Singaporean maker of sugar free green tea, I'll repeat that, sugar free green tea, is one of the biggest suppliers of tea into Thailand.

 

No, I just believe the news article is right on target...it's purely a tax increase.  Let's turn sugar-based drinks into the next "sin tax" tax gold mine/target.  It's simply a tax increase.

 

 

So the second largest sugar exporting country taxes imported sugar drinks, hmm!

 

http://www.bloomberg.com/news/2014-02-24/sugar-exports-from-thailand-jumping-22-to-record-on-demand-gain.html
 

[Pib]

 

 

So the second largest sugar exporting country taxes imported sugar drinks, hmm!

 

http://www.bloomberg.com/news/2014-02-24/sugar-exports-from-thailand-jumping-22-to-record-on-demand-gain.html
 

 

You lost me on this one.  What does Thailand exporting sugarhave to do with the govt proposing an excise tax on sugar-based drinks...drinks that are made within or imported to Thailand?  The govt can apply an excise tax to any product/service, whether imported or made within Thailand.

[Pib]

 

 

It's just no logical - they should start with coke and pepsi in this case.

 
They have already an 25% excise tax.

 

So why are coke and pepsi still the cheapest drinks on the market?

 

 

Cut and Paste from the Thailand Excise Dept regarding current excise tax on sodas and other drinks/juices...for soda it appears to be around 0.77 baht per 440cc

 

[attachment=277509:Capture.JPG]

[h90]

oxygen is next!

 

Someone not European might has a hard time to believe it, but we in Austria have an Air-Tax. It is for things, mostly but not only promotion, that hangs over the sidewalk into public air.

German "Luftsteuer" which means exactly "Air-Tax".

 

So please don't give someone good ideas about new taxes......

[GAZZPA]

Excise tax because it does very little to promote the Tea farmers?..........

 

I will never stop getting tired of the absolute BS that the Thai authorities spout expecting everyone to believe and accept it. Why can't they at least find an excuse that actually makes sense. 

 

So, is the tax going to subsidise the local farmers because the drinks company is not buying enough tea? Of course not, this is all about slapping a heavy tax on drinks that are sold in high numbers in every convenience store in the country. It's about money, that's all.

 

I would rather they just said that,, "we need more cash in the so we are having to introduce this duty",, might not make people happy but at least it would be true.

 

 

[chiang mai]

 

 

 

So the second largest sugar exporting country taxes imported sugar drinks, hmm!

 

http://www.bloomberg.com/news/2014-02-24/sugar-exports-from-thailand-jumping-22-to-record-on-demand-gain.html
 

 

You lost me on this one.  What does Thailand exporting sugarhave to do with the govt proposing an excise tax on sugar-based drinks...drinks that are made within or imported to Thailand?  The govt can apply an excise tax to any product/service, whether imported or made within Thailand.

 

 

Stay tuned, I haven't gone away, am looking at stuff.

[mrfill]

Slightly more detail is shown in the graphic in the first post here

http://www.thaivisa.com/forum/topic/747871-inheritance-tax-gets-ncpo-nod/?utm_source=newsletter-20140801-0751&utm_medium=email&utm_campaign=news

 

It states:

100% fruit juice = no tax

50% fruit juice = Lower than 50% of the price

10% or less mixed fruit juice = 50% tax

Note: At present beverages hit with an excise tax includes soft drinks with a soda content (20% of the price); energy drinks (20% of the price) and soda (25% of the price)

 

 

[Pib]

And just for any folks not sure what an "excise" tax is, well, it's not an import tax...or the Value Added Tax (VAT) we pay on product/services.  And excise tax is an additional tax applied before it reaches you the end customer....there are many, many products/services with excise taxes applied...many, many more than the few examples give in the quote below.

 

Import, excise, coporate, and VAT taxes produce the great majority of Thailand tax revenue...then comes personal income tax which only a minority of the population pay...I've read only about 2 million Thais out of the country's almost 70 million population, with probably around half of that population being of working age, file personal income tax returns.    

 

So when it comes time to expand the tax base the govt routinely focuses on excise and import taxes...those taxes the general population generally ain't got a clue about/just don't understand/causes their eyes to glaze over when talking about them...but they can easily understand an increase in VAT or personal tax which the govt tries to avoid increasing since they know the population will easily spot that.  But with import/excise type taxes the govt can BS much of the public into thinking it just the manufacturer increasing his price...it's just inflation.

 

 

Main Sources:

Customs DepartmentIntegrated Tariff Database, Customs Department

 

Excise Tax

Excise tax is an indirect tax imposed by the Excise Tax Act and other specific Acts, on certain commodities irrespective of whether the commodities are produced in Thailand or imported.  Excise tax is imposed on the manufacturer or importer; tax liability is incurred when the goods leave the factory or bonded warehouse, or are imported.   Commodities subject to excise tax include-: 

•    petroleum and petroleum products;

•    non-alcoholic beverages;

•    electrical appliances;

•    lead crystal products;

•    motor vehicles, motorcycles, yachts;

•    perfume;

•    certain services; and more.

Excise taxes can range from less than 1% up to 50%.

 

Main Source:  Excise Tax, Excise Department

 

 

 

[chiang mai]

And just for any folks not sure what an "excise" tax is, well, it's not an import tax...or the Value Added Tax (VAT) we pay on product/services.  And excise tax is an additional tax applied before it reaches you the end customer....there are many, many products/services with excise taxes applied...many, many more than the few examples give in the quote below.

 

Import, excise, coporate, and VAT taxes produce the great majority of Thailand tax revenue...then comes personal income tax which only a minority of the population pay...I've read only about 2 million Thais out of the country's almost 70 million population, with probably around half of that population being of working age, file personal income tax returns.    

 

So when it comes time to expand the tax base the govt routinely focuses on excise and import taxes...those taxes the general population generally ain't got a clue about/just don't understand/causes their eyes to glaze over when talking about them...but they can easily understand an increase in VAT or personal tax which the govt tries to avoid increasing since they know the population will easily spot that.  But with import/excise type taxes the govt can BS much of the public into thinking it just the manufacturer increasing his price...it's just inflation.

 

 

Main Sources:

Customs DepartmentIntegrated Tariff Database, Customs Department

Excise Tax

Excise tax is an indirect tax imposed by the Excise Tax Act and other specific Acts, on certain commodities irrespective of whether the commodities are produced in Thailand or imported.  Excise tax is imposed on the manufacturer or importer; tax liability is incurred when the goods leave the factory or bonded warehouse, or are imported.   Commodities subject to excise tax include-: 

•    petroleum and petroleum products;

•    non-alcoholic beverages;

•    electrical appliances;

•    lead crystal products;

•    motor vehicles, motorcycles, yachts;

•    perfume;

•    certain services; and more.

Excise taxes can range from less than 1% up to 50%.

 

Main Source:  Excise Tax, Excise Department

 

 

 

 

 

Less subsidies for local products, which is what I'm searching for, and will find.

[Pib]

Less subsidies means more money staying in the govt tax pot....higher excise tax on sugar-base drinks means more money coming into the govt tax pot....a win-win situation for the govt tax revenues...not to imply higher taxes is a good thing for the public.

[trainman34014]

The only good thing about this is that it may stop people drinking more useless rubbish than they do now.   Hit Pepsi, Coke and all other Soda type drinks in the same way and help save more lives.

[bronco10250]

This applies also to sugar-free products? TIT!

[wolf5370]

I think it's a good decision. These drink contain almost no tea, still they are sold as tea.

I have ever checked how much kiwi there was in a certain kiwi-green tea. I believe it was 0.005% and the percentage of green tea was also really small.

When you sell something as green tea, I think it's fair to assume it's mainly based on green tea and not on a mix of chemicals and sugar.

 

These tea drinks try to give people the illusion that they are drinking something healthy, while they are not different from coke or pepsi (these should be taxed too).

OK, reading from the label of Green Tea (Honey and Lemon) I am currently drinking:

 

Green Tea (liquid - so including water content) : 85%

Fructose (sugar) : 9,5%

Sugar (syrup): 5%

Lemon: 0.003%

Honey: 0.0025%

 

Seems quite a lot of tea to me - just how much actual tea is in a cup of Tetley's? Mostly water - so very little actual tea!

 

This is more likely as part of the sugar taxes just been proposed, there is a fair amount of sugar in it (even if it is split into syrup and fructose).

 

Edited August 1, 2014 by wolf5370

[TallGuyJohninBKK]

There was another thread on this today, titled relating to the inheritance tax proposal, that made things more clear.

 

As best as I recall, they're talking about having NO tax on 100% fruit juice drinks, a medium tax on 50% fruit juice drinks, and a 50% tax on juice drinks with 10% or less actual fruit juice content.

 

According to that same article, there is now already a 20-25% excise tax on soda and soft drinks.

 

http://www.thaivisa.com/forum/topic/747871-inheritance-tax-gets-ncpo-nod/?hl=%20inheritance%20%20tax

 

[attachment=277520:PS2049.jpg]

[wolf5370]

 

Frickin ridiculous! Such idiots.

 

Why?

These "green tea" drinks have the same amount of sugar as coke. It is a sugar drink with tea flavor. Coke is a sugar drink with coca flavor (or whatelse). So it would be only fair to tax it the same.

(I got told coke is already taxed with 25%, but I am not sure if it is true).

 

 

I think currently all ()bottled/canned) beverages are taxed at 20-25% regardless of content (other than alcohol of course). The change is to tax based on sugar content - bot generating more taxes and pushing Thais (who are getting fatter year on year) into healthier choices. Makes sense to me! Drinks with 50% or more sugar will be taxed at 50%, drinks less than 10% will be taxed at 10% everything between will be taxed at 20% (or perhaps against the actual percentage starting at 20% - that bit is a bot foggy). Oishi contains about 14% sugar, so hits the 20% mark. Coke is about 12%. Mountain Dew is closer to 15%. And those Thai brands like Est and cheaper brands are very high!

[wolf5370]

There was another thread on this today, titled relating to the inheritance tax proposal, that made things more clear.

 

As best as I recall, they're talking about having NO tax on 100% fruit juice drinks, a medium tax on 50% fruit juice drinks, and a 50% tax on juice drinks with 10% or less actual fruit juice content.

 

According to that same article, there is now already a 20-25% excise tax on soda and soft drinks.

 

http://www.thaivisa.com/forum/topic/747871-inheritance-tax-gets-ncpo-nod/?hl=%20inheritance%20%20tax

 

PS2049.jpg

 

Yes I saw this - but how does this relate to non-fruit based drinks, such as Teas. Tea isn't pulped, it is a flavouring and will never amount to 10% let alone 100% of content of the drink (chewing tea anyone?). Also, it vaguely mentions carbonated drinks on the presumption of high sugar content - but many diet varieties have zero sugar content - and many have no fruit content either. How about drinking water - it has zero fruit content!

[Thakkar]

This is lame dog sick pig excuse,  nothing to do with tea producers, it's because it's one of the best sellers  MONEY--INCOME they think everyone has fallen of the back of a number nine bus?

 
AFAIK currently drinks with tea get a tax cut, this news probably means that, due to actual tea content being so minimal the normal tax level should/will be applied.

This.

It's not so much a new tax as the abolition of a tax exemption. They got the exemption by arguing that they would be promoting the welfare of tea and fruit farmers by buying their product to manufacture their drinks. Turns out they aren't to any appreciable level, so the original argument for exemption isn't valid. They now pay the tax like everyone else. They're lucky they got away with the scam for this long. The next thing to do is t sue them for back taxes.

These drinks are marketed as healthier alternatives to soft drinks. They aren't. With soft drinks, people know they aren't healthy and so likely to consume in moderation. These "teas" and "juices" --people actually think they are healthy and so tend to drink more.

T Edited August 1, 2014 by Thakkar

[ldnguy]

If it gets people consuming less sugar then I'm all for it. Would be better to call it a health tax.

[jimbeam1]

With the amount the Junta are spending, expect more of the same across the board. Thailand is about to get very expensive.
jb1

[Zeegator]

 

 

How does an excise tax help the farmers? Unless the monies go to them directly, this is BS.

 

Domestic market protection protects local farmers and penalizes overseas competition.

 

 

But isn't OISHi made and bottled in Thailand as part of the OISHI (Thailand) group from the Japanese parent company?

 

Wonder if they'll add an excise tax to Shell and Esso petrol so it can't compete with PTT?

 

 

Oishi is a Thai company, there is no Japanese 'parent'.
 

[jacko45k]

This is lame dog sick pig excuse,  nothing to do with tea producers, it's because it's one of the best sellers  MONEY--INCOME they think everyone has fallen of the back of a number nine bus?

There certainly seems to be a lot of brands and space allotted to 'Green Tea' in the supermarkets.........as many shelves as Coca Cola!

After working in China and hot green tea being all I could get off the cheap contractors in the hot season I likely will never drink it again.

 

Someone over here heard the rumours of taxing sugary drinks in other countries and wanted to say something.

[chiang mai]

Well I can't find the info that I was looking for so I don't have a defensible argument here, guess I'll have to change my tack - am happy that sugary drinks are being taxed more, helps keep the nation healthy and slim. So what if the idea is copied from the west, there's very few original ideas anywhere any more, the need for lowered sugar intake is all too apparent judging from the waist lines in the West plus the burgeoning increase in Type II cases.

[ginjag]

Well I can't find the info that I was looking for so I don't have a defensible argument here, guess I'll have to change my tack - am happy that sugary drinks are being taxed more, helps keep the nation healthy and slim. So what if the idea is copied from the west, there's very few original ideas anywhere any more, the need for lowered sugar intake is all too apparent judging from the waist lines in the West plus the burgeoning increase in Type II cases.

 

Thais buy no end of these cheap sweet cakes, cookies, sweet drinks, are they not helping the fatties ???   and other things that make people fat like the fast food shops.

 

It's all very well getting big tax and blaming the people for buying, because of obesity --BUT how about zero tax on all these floor hogging 30,000 baht fitness machines in every store.  Cheaper fitness centers,   If the population was encouraged to burn OFF the sugar it would be better, but you do not get tax to educate people to keep fit.

[chiang mai]

Everywhere in the country, at 5pm, there's a free aerobics class, every town and city has them, CMU has a massively well attended one - an initiative of the Queen and an excellent idea. In kathu in Phuket there's one in the parking lot of Bangkok Hospital which loads of nurses go to, another behind Junceylon in Patong.