Govt to cut alcohol taxes and tariffs

[STEVE G]

The tax on imported wine is WAY more than 10% ... its their way of saying they're only cutting it by 5% which won't even be noticeable. Besides, the local stuff has been hiked at least once a year for as long as I can remember.

Edit: "In Thailand there is a 60% tariff on imported wines," https://mahanakornpartners.com/wine-imp ... -thailand/
Basically the 10% is just VAT, on top of the 60% import tariff which is why wine is ridiculously expensive here.

If you read the article, it says the 54-60% import tax on wine is gone for one year as well as the reduction in exercise duty.

[buksida]

Well, that would be absolutely marvellous as we *should* get the same prices as in Laos, Cambodia, Vietnam, Japan, etc ... but I'm not holding my breath as it'll be down to the vendors and establishments to pass on the savings to customers.

[Big Boy]

Many will already have booked their holidays for this year, so this knee-jerk reduction will be virtually worthless for this high season. This should have been announced months ago. I wonder when the year ends - be sure it won't be 31 Dec.

[bigston]

But when does it come into effect ???
im so very thirtsy.

https://www.bangkokpost.com/business/ge ... ur-tourism

[buksida]

"Experts say imported wine prices will be reduced by about 100 to 200 baht per bottle after a new tax reduction is announced on the Royal Gazette."

https://www.khaosodenglish.com/news/202 ... -tourists/

Well, something isn't right there. Wine prices in Thailand should theoretically drop by at least 50% if the tax is eliminated since the majority of what we're paying on a bottle is duty. I think there will be a lot of disappointed people out there waiting for this!

[Dannie Boy]

I would imagine that most wine drinkers will still welcome a B100-200/bottle reduction, even if that represents less than it should be - as Tesco say, “every little bit helps”!!

[HHTel]

"Experts say imported wine prices will be reduced by about 100 to 200 baht per bottle after a new tax reduction is announced on the Royal Gazette."

https://www.khaosodenglish.com/news/202 ... -tourists/

Well, something isn't right there. Wine prices in Thailand should theoretically drop by at least 50% if the tax is eliminated since the majority of what we're paying on a bottle is duty. I think there will be a lot of disappointed people out there waiting for this!

Agreed. The math just doesn't add up eliminate 10% tax plus eliminating 50 - 60% import duty. Let's see what's printed in the Royal Gazette. It may be clearer ...... or not!

[hhinner]

If tax/duty were to be raised tomorrow, I'd bet that prices would go up tomorrow. However, with tax/duty reduced/eliminated I wonder how long it will take to work through 'old stock'. Of course, if the duty paid stickers disappear from bottles that scam won't work.

[buksida]

Only in Thailand ... "govt cuts tax on alcohol, bars on Friday ... bans alcohol, closes bars on Saturday"

Taxes slashed for booze, pubs
The Excise Department has cut tax rates for alcohol and nightlife venues, effective on Friday, in a bid to boost tourism and domestic spending.

Department director-general Ekniti Nitithanprapas said that the new tax rates are in line with measures approved by the cabinet on Jan 2, which are intended to promote Thailand to become a tourism hub.

"The government hopes to create an atmosphere fitting for a tourist destination, make Thailand a centre for restaurants and eateries, presenting an alternative to consumers and bolstering its pricing strategy, in order to encourage more tourist spending and attract more high-quality foreign visitors," Mr Ekniti said.

The ad valorem tax rate for grape wine and sparkling grape wine has now been reduced from 10% to 5%, while the tax rate based on quantity (baht per litre per 100 proof alcohol) for them has been reduced from 1,500 baht to 1,000 baht.

The ad valorem tax rate and the tax rate based on quantity for fruit wines have been reduced from 10% to 0% and 900 baht, respectively.

The ad valorem tax rate and the tax rate based on quantity for local liquors (less than 7 proof alcohol) have been reduced from 10% to 0% and 150 baht, respectively, while the ad valorem tax rate and the tax rate based on quantity for fermented liquor mixed with distilled spirits (over 7 proof alcohol) are 10% and 255 baht respectively.

The ad valorem tax rate for night-time entertainment venues, including nightclubs, pubs and bars, is reduced from 10% to 5% from yesterday until Dec 31.

Mr Ekniti said the new tax rates would lead to cheaper prices for alcoholic beverages and boost tourism and spending, as alcohol prices are being used as stimulus measures to encourage foreign visitors to choose Thailand as their travel destination.

https://www.bangkokpost.com/thailand/ge ... booze-pubs

What about the 60% import duty? I wonder how long it'll take until the consumer sees the benefit, if ever at all. Inflation will wipe out any of these smaller cuts ... oh wait, the junta govt said there is no inflation in Thailand.

[buksida]

Rocky start for Thailand’s latest alcohol tax reform
Thailand has decided to cut its prohibitive alcohol taxes. The tax changes were announced earlier this year, and took effect from 1 March. The cabinet proposed an alcohol tax slash at three levels. First, the import duties of 54% will be reduced to 0%. Second, the excise tax will drop from 10% to 5%. Another excise tax, which applies to the volume and percentage of alcohol and calculated at 1,500 Bhat per litre for every 100 degrees of alcohol content, will now come down to 1,000 Bhat.

Christophe Imbert of Comte de Sibour Ltd, a wine distribution company with a strong focus on on-trade distribution, confirmed to db that the excise cuts are fully confirmed, and the import cuts will be applied to every exit from the bonded warehouse starting this week.

...

All importers are now required to re-register every label with the excise department, and this time around, the customs and excise will determine the wine value.

Currently, the calculations favour premium wines (valued at 1000 Bhat and above) more than the low to mid-priced wines (valued at below Bhat 1000) — a shift from the former system. Wines priced under 1000 Bhat were previously exempt from the excise tax of 10%. Under the new taxation system, all wines will be taxed at 5%.

According to Imbert, the under 1000 Bhat wines constitute the value segment, making up 95% of wines on retail shelves. The 5% taxation will eliminate most of the savings gained through import duty exemption and excise per volume tax drop.

Among the flurry of re-registration and new tax calculation, the question remains: When will the consumer see the price cuts on the retail shelves? The answers are varied.

“It’s not like tomorrow everybody will drop their prices by 30%. It’s going to take a long time to implement it step by step,” says Conrad, as the price changes must be reflected across the supply chain. “Maybe by the end of the year, we could see some effect.”

The impact on retail shelves may be faster. “Because when we set up the new price, the retailer automatically reflects to the consumer,” he adds.

https://www.thedrinksbusiness.com/2024/ ... ax-reform/

In other words, its unlikely to make a difference to wine prices for most of us as suspected. Has anyone actually seen prices drop yet?

[404cameljockey]

In other words, its unlikely to make a difference to wine prices for most of us as suspected. Has anyone actually seen prices drop yet?

Of course, as expected. I'll still be buying very little wine then as I can't drink the cheap fruit juice horror.

I wonder how changes will reflect in imported spirits?

[kwajdiver]

I’ve been closely watching wine prices and have noticed no difference – still ridiculously expensive.

[PeteC]

I don't think any reduction will be seen until all suppliers have cleared their current stocks where the old tax/duty rate has already been paid to the Government.