PM Prayut assigns Finance Min to clarify on excise tax for liquor

[webfact]

PM assigns Finance Min to clarify on excise tax for liquor

 

BANGKOK, 22 February 2017 (NNT) - The Prime Minister has stressed that determining excise tax for liquor requires fairness and plans to ask the Ministry of Finance to clarify the new Excise Tax Act, over concerns that it could become a medium for corruption. 

Prime Minister Gen. Prayut Chan-o-cha has addressed the Thailand Development Research Institute's (TDRI) concerns that the government's new Excise Tax Act could become a channel for corruption, particularly the excise tax structure for liquor. 

The excise tax rate for Whisky is at 1 thousand baht per 1 litre, as opposed to 3 thousand baht per liquor for Wine or Beer. The TDRI is concerned that this factor could drive the price of Whiskey up and goes against the institute's proposal to tie the tax rate to each beverages' degree of alcohol, which is the practice in many other countries. 

The TDRI is also concerned that Thailand's new excise tax rate for liquor would encourage corruption among state officials who could benefit by conspiring with liquor producers or importers. 

Prime Minister Gen. Prayut Chan-o-cha has said regarding the excise tax structure for liquor, that relevant agencies has been tasked with establishing a tax rate that would ensure fairness. The Prime Minister then assigned the Ministry of Finance to clarify this issue further.

 

-- nnt 2017-02-22

 

[alant]

I agree needs clarification, I know wine is expensive but I am not paying 3000 per litre

[GiantFan]

2 minutes ago, alant said:

I agree needs clarification, I know wine is expensive but I am not paying 3000 per litre

That's for pure ethyl.  Multiply times 12% abv to get tax.  Works out to B270 per 750ml bottle.

[natway09]

Still needs clarification.

Have a look at Lao Khao (the thai killer) prices. Somethings not right here

[Srikcir]

15 hours ago, webfact said:

determining excise tax for liquor requires

...fairness to those police who get advisory fees from liquor companies.

[candide]

Which companies finance the TDRI expertise?

[GiantFan]

13 hours ago, natway09 said:

Still needs clarification.

Have a look at Lao Khao (the thai killer) prices. Somethings not right here

Special dispensation.  Taxed at a lower rate to prevent backyard distillation.  Less blindness and keeps the masses sedated.

[alant]

16 hours ago, GiantFan said:

That's for pure ethyl.  Multiply times 12% abv to get tax.  Works out to B270 per 750ml bottle.

thanks for that, still don't understand it according to your calculation 1 litre of beer (typically 5% ABV) would have 150 baht duty making it more expensive that price over the counter does it not?

[madmitch]

On 2/22/2017 at 9:06 AM, webfact said:

The excise tax rate for Whisky is at 1 thousand baht per 1 litre, as opposed to 3 thousand baht per liquor for Wine or Beer. The TDRI is concerned that this factor could drive the price of Whiskey up and goes against the institute's proposal to tie the tax rate to each beverages' degree of alcohol, which is the practice in many other countries. 

I'm confused.

 

If whiskey were taxed at the same rate as the other beverages then the price would rise even more. Or are they suggesting that beer and wine taxes be reduced. 

 

This does come from the National News Bureau, however, and accurate translation into English is not their strong point!

[GiantFan]

2013 tax (not sure what the new rates are).  They make it very complicated. More chances for different interpretations and a way to "help" to reduce as long as something's kicked back.

Under the old regulations imported brands were subjected to alcohol tax based on CIF (costs, insurance and freight) and it is claimed that in order to keep tax rates to a minimum companies regularly declared amounts below the actual costs.

The new rates are based on three criteria: value, alcohol percentage and alcohol volume.

Beer: The increase in price of a bottle of beer is around 3-7 baht per bottle. The maximum tax stays at 60% of the product value, but the tax rate per litre of pure alcohol has risen from 100 baht to 300 baht.

Wine: Products valued under 600 baht per bottle are exempt from the product value-based tax. Products over 600 baht are now taxed at 36%. With regards to alcohol content, all wine is now taxed at a 1,000 baht per litre of pure alcohol, up from 100 baht previously.

Spirits/Liquor: A price increase of between 7-15% on Spirits has been imposed depending on the product and level of alcohol content.

[nong38]

THe last time tax was raised on beer, no one seemed to know what the new rate was going to be, there were shortages then Chang re appeared with price having gone up from 42 to 49 bts, I expect the company might have added their own bit in that as well and it was never clarified sometimes its best left muddied eh? Cant see whats going on but the figures in the original article dont seem to make sense why dont they think people will start brewing wine and beer and reduce the price of the tax per litre?

Clearly a lot of thought has gone into this project with a strange ending, perhaps its was the affect of the product.