New excise formula to raise prices of alcohol in Thailand, but not as much as feared

[webfact]

New excise formula to raise prices of alcohol, but not as much as feared

March 06, 2017 01:00 
By WICHIT CHAITRONG 
THE NATION

 

BANGKOK: -- CONSUMERS are needlessly worried that a new excise bill will drive the prices of alcoholic beverages into the stratosphere, the Excise Department says.

 

The bill, soon to be published in the Royal Gazette, has caught public attention after many people came to believe, wrongly, that the new tax rates will double the retail prices of beer, wine and liquor.

 

People were confused about tax ceilings stipulated in the new excise law, said Somchai Poolsavasdi, director-general of the Excise Depart-ment. The tax ceiling on beer, wine and liquor will be 30 per cent of retail prices, or Bt3,000 per litre of alcohol. The new tax ceiling on cigarettes is much higher, at 90 per cent of the retail price. 

 

“The ceiling rates are set for the next 20 years. But the applied rate will be much lower initially as we do not want to increase the tax burden,” Somchai said. 

 

Full story: http://www.nationmultimedia.com/news/business/EconomyAndTourism/30308016

 

-- © Copyright The Nation 2017-03-06

[Chang_paarp]

1 hour ago, webfact said:

“The ceiling rates are set for the next 20 years. But the applied rate will be much lower initially as we do not want to increase the tax burden,” Somchai said. 

Or until the next government decides to change things.

[maoro2013]

Another missive with no real message except that the government wants more revenue using the commonly used guise of trying to reduce sales of alcohol  and cigarettes for the good of the people.

[dinsdale]

that still takes a bottle of Leo to around bt70 and LM cigs to around bt150. SMS bt90. Expensive. Being that cigs not too long ago went up 25%. Thats up 115% in around 2 yrs.

[mtls2005]

So last week it was stated that there would be no impact on customers...

 

This week?

 

 

People were confused about tax ceilings stipulated in the new excise law, said Somchai Poolsavasdi, director-general of the Excise Depart-ment.

 

So it's the people's fault? Maybe you could clarify the impacts on consumers?

 

I think most "government" agencies have been "encouraged" to find ways to increase the revenue side of the ledger.

 

 

 

 

 

 

 

Edited March 6, 2017 by mtls2005

[optad]

Quote

The state-owned Thailand Tobacco Monopoly announced on February 26 that it will start selling a new type of low-cost cigarette for “low-income smokers” who may otherwise resort to the black market or rolling their own sticks.

Quote

Some observers, however, noted that the introduction of cheaper cigarettes by a state entity to make smoking “more affordable” as a reaction to the government raising cigarette taxes in order to prevent people from smoking could be called a quite paradox policy.

http://investvine.com/thailand-to-provide-low-cost-cigarettes-to-the-poor/

 

Alternate view offered for comment. 

 

Personally support taxing cigarettes into oblivion. 

[ramrod711]

2 hours ago, webfact said:

many people came to believe, wrongly, that the new tax rates will double the retail prices of beer, wine and liquor.

The oldest trick in politics, threaten huge tax hikes then announce more moderate hikes so people will be relieved that their favorite "sin" will still be affordable though much more than the present price. Hell, even the Pharaohs knew that you had to allow the workers a beer at the end of the day.

[Saradoc1972]

So does anyone have actual figures how that is going to affect costs of your can of Chang at 7/11 or a pack of SMS in the immediate future, say, a year?

[craigt3365]

Other nations should reciprocate.  France should tax Thai imported rice 300% just like Thailand taxes French imported wine. 

[darksidedog]

Given the stunning levels of incompetence shown by this administration, I would suggest no actual numbers are available, becuase they haven't found any one with the brain power necessary to calculate it.

[Kiwisailor]

“I agree that prices of alcoholic beverages should be higher than they are currently, as some types of beer are very cheap,” Nipon said. After the price increase, alcohol consumption will drop slightly for a while, but consumption will return to normal later, he said.  From OP

 

That's assuming that tourists don't decide to vote with their feet - 90-120 BHT for a beer here or 30 BHT in Cambodia and Vietnam

[Mister Fixit]

1 hour ago, dinsdale said:

that still takes a bottle of Leo to around bt70 and LM cigs to around bt150. SMS bt90. Expensive. Being that cigs not too long ago went up 25%. Thats up 115% in around 2 yrs.

 

And that's no bad thing.  Taxing cigarettes at 1000% would be OK by me.  

[Mister Fixit]

19 minutes ago, craigt3365 said:

Other nations should reciprocate.  France should tax Thai imported rice 300% just like Thailand taxes French imported wine. 

 

Thailand taxes wine from anywhere as luxury goods.  Is every country which exports wine to Thailand going to retaliate by imposing higher tariffs on a food item?

Edited March 6, 2017 by Mister Fixit

[daveAustin]

Another missive with no real message except that the government wants more revenue using the commonly used guise of trying to reduce sales of alcohol  and cigarettes for the good of the people.

Well it will work on me as I will certainly be buying less. Thai beer is already extremely, boringly sh1t... and they expect me to pay more of my heavily taxed money more for it? Bring a good lager out like Beer Laos and I will happily pay accordingly. I won't happily pay for dishwater.

[fruitman]

[craigt3365]

23 minutes ago, Mister Fixit said:

 

Thailand taxes wine from anywhere as luxury goods.  Is every country which exports wine to Thailand going to retaliate by imposing higher tariffs on a food item?

Why not? What's fair is fair.  When I'm in Hong Kong (or pretty much any nearby country) I can get wine at 1/2 price or less for what I pay here.  It's just corruption to protect the 2 big families in the alcohol business here.

[smedly]

from reading this article I believe they have raised the tax ceiling on these items but not set the actual tax rate

 

they have to pay for those subs and it seems with all the other national projects - they can't afford it

 

people think beer etc is cheap here but it is all relative, 100baht taxi ride = 1 beer, in the UK a 3.50  quid taxi ride = 1 beer   

[fruitman]

2 minutes ago, smedly said:

from reading this article I believe they have raised the tax ceiling on these items but not set the actual tax rate

 

they have to pay for those subs and it seems with all the other national projects - they can't afford it

 

people think beer etc is cheap here but it is all relative, 100baht taxi ride = 1 beer, in the UK a 3.50  quid taxi ride = 1 beer   

But in the UK you get a qualified driver plus a high standard taxi.....and you'll get a high quality beer plus wide clean sidewalks so you can easy walk to your bed, don't need a taxi.

[jollyhangmon]

48 minutes ago, Mister Fixit said:

 

Thailand taxes wine from anywhere as luxury goods.  Is every country which exports wine to Thailand going to retaliate by imposing higher tariffs on a food item?

Well, yes, hopefully they all 'retaliate', about time they did.

 

Both taxes on alc as well as tobacco are a big hoax as in 'we have to collect (and up them every other year) because of the huge costs for our medical systems ...' => all BS, steaming one.

I have yet to read about a single country that really dedicates these taxes for medicare as they all pretend & as it certainly should be - because if so there would be golden showers (i mean the fittings ;-) in all the hospitals & retirement homes, no problem with elderly-care at all and no monthly contribution from salaries necessary to begin with.

 

Instead all that tax-money goes straight into 'general budgets' where it just vanishes, getting wasted on say submarines (locally) or politicians inflated salaries (everywhere), just for instance ... 

 

Edited March 6, 2017 by jollyhangmon

[madmitch]

Supermarket beer prices are not much cheaper than the UK now. 

[smedly]

4 minutes ago, fruitman said:

from reading this article I believe they have raised the tax ceiling on these items but not set the actual tax rate

 

they have to pay for those subs and it seems with all the other national projects - they can't afford it

 

people think beer etc is cheap here but it is all relative, 100baht taxi ride = 1 beer, in the UK a 3.50  quid taxi ride = 1 beer   

 

4 minutes ago, fruitman said:

But in the UK you get a qualified driver plus a high standard taxi.....and you'll get a high quality beer plus wide clean sidewalks so you can easy walk to your bed, don't need a taxi.

yes I agree

[Mister Fixit]

7 minutes ago, madmitch said:

Supermarket beer prices are not much cheaper than the UK now. 

 

Quite.  Sainsbury's have a promotion now with many beers at £1.60 a bottle.  That's about 68 baht at 43/£ - Leo is about 55, Singha about 60.

 

Thailand has never been that cheap for beer in relative terms.  

Edited March 6, 2017 by Mister Fixit

[Saradoc1972]

58 minutes ago, madmitch said:

Supermarket beer prices are not much cheaper than the UK now. 

Deep condolences to all UK residents.

Now, cheap beer like "Cheers", the stronger quality, is about 46 Baht a 0.5 l can in 7/11, about 40 Baht if you buy a palette of 12 at Tesco, which would put it at 2.16 Euro or 1.85 quid a litre.
In Germany now, it has been said alcohol was generally too cheap there by some health experts and whatnot, buying a litre of beer at a discounter, say ALDI with their Karlsquell or Karlskrone brands (better known under their moniker "Aldis Rache"), will set you back 0.56 Euro a litre, or 0.48 quid.

 

http://www.discounter-preisvergleich.de/Pilsener-6x-0-5-L-ALDI-Sued-1552.html

 

We're talking plastic bottles here, but it is still beer under German legislation, same a "Cheers"; I sometimes don't know what the buzz is all about. There are premium beers, yes, but to me that's mostly Bavarian or Mexican stuff. Maybe some Belgian craft stuff. And when I throw a party I will offer Früh Kölsch or Sion, otherwise don't bother after the first two bottles.

 

 

[spacebass]

1 hour ago, Mister Fixit said:

 

Thailand taxes wine from anywhere as luxury goods.  Is every country which exports wine to Thailand going to retaliate by imposing higher tariffs on a food item?

Fragrant Jasmine rice is luxury rice.

[trigpoint]

 
Quite.  Sainsbury's have a promotion now with many beers at £1.60 a bottle.  That's about 68 baht at 43/£ - Leo is about 55, Singha about 60.
 
Thailand has never been that cheap for beer in relative terms.  

Supermarket beer prices are not much cheaper than the UK now. 

Some supermarkets are less than that, and far superior beer and massive choice.

[dinsdale]

2 hours ago, Mister Fixit said:

 

And that's no bad thing.  Taxing cigarettes at 1000% would be OK by me.  

Rather selfish attitude. Plenty of people smoke and plenty of poor people smoke. I don't think this is an argument about the pros and cons of smoking. It's more about a Junta that's running out of money and is going to get this back by taking it from the ordinary persons pocket. A blatant tax grab. 

[baansgr]

Apart from Muslim countries, Thailand now has the most expensive alcohol prices worldwide, if half a days pay only gets you one beer in a decent bar.

[localczar]

3 hours ago, Saradoc1972 said:

So does anyone have actual figures how that is going to affect costs of your can of Chang at 7/11 or a pack of SMS in the immediate future, say, a year?

most likely absolutely NO ONE knows the cost impact....555....not the gov't, not somchai, not the invisible monk,

 

flying by the seat of their pants...chaos as usual.

 

But yes, I am curious to know how this will affect costs. SIN taxes are huge money grabs for govt's...

[Ulic]

I see the government is still busy trying to kill the golden goose (tourism) With beer

readily available at bars and restaurants for about 50 cents US in Vietnam (yes a dollar

in some tourist bars) cleaner beaches and water, great food (as Thailand does) and

interesting new places to see, a less expensive vacation of higher quality becomes

available. No double pricing. Even a discount on seniors train travel without even asking.

We shall see over the next few years what comes to pass. Lots of younger Russian

couples in Da Nang. Direct flights from Russia. If the Middle East airlines and G20

airlines start flying direct to Vietnam, Thailand will be in for a rude awakening.

[smedly]

2 minutes ago, localczar said:

most likely absolutely NO ONE knows the cost impact....555....not the gov't, not somchai, not the invisible monk,

 

flying by the seat of their pants...chaos as usual.

 

But yes, I am curious to know how this will affect costs. SIN taxes are huge money grabs for govt's...

plus if they think it won't have an impact on tourism they are wrong

 

the problem is that Thais making these decisions travel to the west and frequent expensive joints like nightclubs and hotels in the big cities were prices are generally sky high and they think Thailand is extremely cheap in comparison - they are wrong and misguided in their thinking