Thailand: Non-alcoholic beverages to be taxed

[webfact]

Non-alcoholic beverages to be taxed



BANGKOK: -- The Excise Department will propose the government to levy tax on non-alcoholic beverages in its attempt to generate more revenue to the state after its excise tax collection fell below target.

Somchai Poonsawat, the director-general of the Excise Department, said that he would propose the collection of excise tax on non-alcoholic beverages through the re-regulation of raw materials from nature used in the mixture of the beverages.

He said the current 10% tax on such beverages might be increased to 30-50%. For example tax on green tea beverage which is exempted from tax might face a 10% tax which will generate additional two billion baht more to 5-6 billion baht a year

Meanwhile he said that the Excise Department would also send officials to inspect tourist spots in the country after the cabinet has banned the import of Baraku water-pipe smoking equipment and Baraku tobacco into the country.

He said 6,400 tons of such equipment and Baraku tobacco has been seized since the ban.

He also said that the department would step up check during the upcoming New Year festival, particularly at the border checkpoints.

Source: http://englishnews.thaipbs.or.th/non-alcoholic-beverages-taxed/


-- Thai PBS 2014-11-13

[Somtamnication]

Ok. Will drink only beer and wine.

[Laughing Gravy]

Ok. Will drink only beer and wine.

A good idea, as sugary drinks have created an obese nation in the west and Thailand looks like they will follow suit. I do hope they make them more expensive than wine or beer.

[ExPratt]

Not a bad idea to be fair , The consumption of sugary drinks is s big factor in childhood obesity

[Katipo]

How will this tax benefit society? Its not like the money will be used to fund education or health as opposed to...oh, I don't know.... further lining the pockets of politicians.

Edited November 13, 2014 by Katipo

[JOC]

• >He said the current 10% tax on such beverages might be increased to 30-50%. For example tax on green tea beverage which is exempted from tax might face a 10% tax which will generate additional two billion baht more to 5-6 billion baht a year< Quote

How does a extempted product create 3-4 billion in taxrevenue??

[worgeordie]

Will syrups,etc, used, to mix with water also be taxed at the 30-50%

they propose,or will they be left as a loophole.

regards worgeordie

[jonclark]

Jesus they must be skint to do this.

Certainly doesn't assist those at the bottom of the societal pile who find their finances squeezed once again. Cost of living keeps on rising

[SABloke]

Next they can tax walking, then breathing, then who knows what else.

Yes,yes, I know these products are already taxed BUT a 50% increase is ridiculous. It doesn't matter that the products have a low selling price, they are still consumer products and as such should fall under some sort of regulation.

[JeremyBowskill]

There is not 1 drink in that picture I would drink, crack on with that lot if they wish.

[ToddinChonburi]

what a bunch of sh............t

[djhotsox]

• >He said the current 10% tax on such beverages might be increased to 30-50%. For example tax on green tea beverage which is exempted from tax might face a 10% tax which will generate additional two billion baht more to 5-6 billion baht a year< Quote

How does a extempted product create 3-4 billion in taxrevenue??

I think it was just poorly worded English, I think the author meant to say "will generate an additional 2 to 5 or 6 billion baht a year" .....??

[jpeg]

Well, this puts to bed the lie 'we tax alcohol for people's health' bs to bed once and for all, does it not.

[Briggsy]

Here you go.

All you need to know, the rates of excise duty, etc. currently levied on non-alcoholic drinks.

Here

[DrTuner]

Right. And pruning the government to lower the costs .. hasn't been in fashion since WWII, anywhere.

Just do a tax tax, 110% of income and get done with it.

Edited November 13, 2014 by DrTuner

[rakman]

Tourism must be down and the beer drinkers are few

[Commerce]

I'm sure the Japanese company Oishi is going to be well pleased... despite its being produced in Thailand.

I'd like to see 100% tax on Red Bull.... exported world wide......... for a certain unknown reason.

[Bluespunk]

Well, this puts to bed the lie 'we tax alcohol for people's health' bs to bed once and for all, does it not.

Don't know really, a lot of the drinks they are thinking about taxing are unhealthy as well.

Though apart from water and milk everything is, if you ask some nutritionists.

[Bluespunk]

"The Excise Department will propose the government to levy tax on non-alcoholic beverages in its attempt to generate more revenue to the state after its excise tax collection fell below target."

They have a target for this?

[whatawonderfulday]

As others have said this is good news. As Thailand continuous it push to ensure only quality tourists come here, they fully appreciate that the quality tourist don't drink that junk anyway. Therefore by forcing the cost up it will be more challenging to market providing better opportunities for more appropriate beverage to be sold. For example many Central stores now have fresh orange juice vending machines. What better way of encouraging the quality tourist to spend their money in these quality stores then offering quality refreshments ?

[GrantSmith]

I'm sure the Japanese company Oishi is going to be well pleased... despite its being produced in Thailand.

I'd like to see 100% tax on Red Bull.... exported world wide......... for a certain unknown reason.

Given that Oishi is a Thai company, I'm sure the Japanese aren't too concerned...

But I'll bet the farm that a certain beer company named after the Thai word for Elephant is none to impressed...

[Chao Lao Beach]

I'm sure the Japanese company Oishi is going to be well pleased... despite its being produced in Thailand.

I'd like to see 100% tax on Red Bull.... exported world wide......... for a certain unknown reason.

Really, Japanese company ?

I am sure you would love to know it is owned by ThaiBev (Think Chung beer)

[gemini81]

Such d*cks. And I thought they couldn't top the car scheme with excise....

[ezzra]

The government merely looking to reap more tax from the people under the guise of regulating

the stuff for health issues, rubbish... they need to cove a huge hole made my the fiendish rice scheme

that emptied the government's coffers...

[Commerce]

I'm sure the Japanese company Oishi is going to be well pleased... despite its being produced in Thailand.

I'd like to see 100% tax on Red Bull.... exported world wide......... for a certain unknown reason.

Given that Oishi is a Thai company, I'm sure the Japanese aren't too concerned...

But I'll bet the farm that a certain beer company named after the Thai word for Elephant is none to impressed...

Given that Oishi had only a 22% stake owned by F&N, which was bought outright by Japan's KIRIN Holdings in 2010... believe as you like! There are Japanese stakes involved here behind the scenes.

Why would Chang not be impressed?

[tkramer]

If they could just stop all the government ministers and other gov. employees from skimming off the top...they'd have all the money they would need.

The anti-corruption mantra is just one big BS smoke-screen. It's business as usual (just don't get caught).

[BangkokHank]

Are they looking to maximize the tax RATE, or the tax REVENUE? Sometimes a lower tax rate generates higher tax revenues.

For example, my favorite beer used to cost an already ridiculous 120 baht a bottle in Thai supermarkets, which already included around 70 baht in taxes (based on the actual cost of the beer, which is less than 30 baht per bottle in Germany, plus transport costs.) In spite of this ridiculous price, I used to still buy a bottle of it every now and then. But then they raised the tax again - making a bottle of this beer cost 170 baht now. At the current outrageous price of 170 baht per bottle, I buy exactly zero bottles of beer anymore. So their beer tax revenue from me went down from ridiculously high - to zero.

Since their excise tax revenue fell short of expectations, perhaps I'm not the only one who is saying enough is enough. Sometimes, when you ask for less, you end up with more. I would suggest that they cut down on wasting tax revenues through their populist vote-buying schemes/scams (like the rice pledging one that just today announced losses of 682 BILLION baht), and which I'm having to pay for by not being able to afford my favorite beer anymore.

Unfortunately though, rather than curtail their waste, they choose instead to just tax more kinds of beverages. Sick.

[kamahele]

It's a good idea to tax soda and the like. I know I'll get a lot of "boos" for this one and understand as I love my beer, but they should tax (highly) alcohol if they want to bring down the rate of consumption. I think that this worked on cigarette sales in the USA better than any education program. Cigarettes are now so expensive, it takes a big chunk of your wages to keep up your habit and youngsters can't afford them as easily.

[Time Traveller]

If the excise department wants to raise more money for the state why don't they just tax the air that we breathe.

There is no point to these extra layers of taxes but it's just blantant theft from people. They already have a VAT tax.

Edited November 13, 2014 by Time Traveller

[sprq]

If they have any sense, they'll tax the sugary drinks and leave the rest alone. Some tea drinks, for example, have no sugar.