Wino Posted December 24, 2009 Report Share Posted December 24, 2009 If I am reading the following article right, the government is thinking of increasing the excise tax on beer and spirits in order to offset Afta’s new zero import tax rate on imported alcoholic beverages. This done in order to protect the consumers’ health? What a bunch of baloney! Finance Minister Korn Chatikavanij yesterday declined to comment on the planned excise hike. However, official sources say the excise ceiling on beer, for instance, is expected to rise from Bt100 to Bt460 per litre based on alcohol content, while that of distilled white spirits and whisky will rise from Bt120 to Bt400. PREVENTING DUMPING The planned hike should help prevent cheaper foreign-made alcoholic drinks being dumped in the Thai market once liberalisation is in place. "Alcoholic beverages damage consumers' health, so it's necessary to use the excise tax as a measure |to manage consumption. Compe-tition in the alcohol industry should also be curbed because fiercer competition as a result of market liberalisation will lead to more consumption. "In addition, the government should enforce a law banning the advertisement of these products to prevent further damage to public health," said a ministry official, who asked not to be named. Under the Afta scheme, Thailand and other Asean countries will be opening up their domestic markets to boost trade within the 10-country grouping. From January 1, several types of products - including alcohol - will benefit from the zero import tax rate, allowing an influx of cheaper beer and liquor from within the region. At present, Thailand is the largest market for alcoholic beverages in Asean, followed by the Philippines and Vietnam. Sources say Chinese beverage firms with production facilities inside Asean are expected to flood the Thai market with cheap beer and liquor. In addition, some European firms are already using production facilities within Asean to supply low-cost products to the Thai market. If the excise tax ceiling does not get adjusted before Afta is enforced, Thai producers will be hit hard by the dumping of foreign products. Beside beer, competition in the distilled white spirits and whisky market segments is also expected to be fierce due to the reduction of import duty. http://www.nationmultimedia.com/2009/12/24/business/business_30119060.php Link to comment Share on other sites More sharing options...
Beer Chang Posted December 24, 2009 Report Share Posted December 24, 2009 I can pay 20 baht for 330 ml of Archa beer so that makes a litre about 60 baht. The 100 baht excise "ceiling" is greater than the selling price of the beer. Link to comment Share on other sites More sharing options...
Beer Chang Posted December 24, 2009 Report Share Posted December 24, 2009 Or if this just refers to imports I can buy 330 ml of San Mig Lite for 40 baht. Link to comment Share on other sites More sharing options...
patong Posted December 24, 2009 Report Share Posted December 24, 2009 Seems to only apply to imports. Wonder how much more I'll have to pay for a bottle of whiskey. Oh well, got to be cheaper than back home where booze is taxed to the max. Link to comment Share on other sites More sharing options...
rucus7 Posted December 26, 2009 Report Share Posted December 26, 2009 If all drinkers, will join me in boycotting beer, wine and spirits for a month, I think this tax will be repealed. Lets stop tyrannical taxation in Thailand. WHO IS WITH ME? Link to comment Share on other sites More sharing options...
Wino Posted December 27, 2009 Author Report Share Posted December 27, 2009 I will drink to that. Sounds like a worthy cause but don't think it has a snowball's chance in hell to work. Link to comment Share on other sites More sharing options...
Beer Chang Posted December 27, 2009 Report Share Posted December 27, 2009 Or a snowballs chance in Thailand! Link to comment Share on other sites More sharing options...
rucus7 Posted December 27, 2009 Report Share Posted December 27, 2009 It could work, if consumers are willing to take a month off. I tend to agree however, drinkers will not unite. After all, hair of the dog means not stopping. Link to comment Share on other sites More sharing options...
Wino Posted December 27, 2009 Author Report Share Posted December 27, 2009 Don't think for a moment a month boycott would do anything. The government would probably raise the tax again to make up for the lost revenue. Link to comment Share on other sites More sharing options...
Beer Chang Posted December 27, 2009 Report Share Posted December 27, 2009 Don't think for a moment a month boycott would do anything. The government would probably raise the tax again to make up for the lost revenue. If so, we'll just have to boycot for 2 months. Link to comment Share on other sites More sharing options...
Wino Posted January 5, 2010 Author Report Share Posted January 5, 2010 Now that we are in the new year, has anyone noticed any difference in the price of booze? Link to comment Share on other sites More sharing options...
patong Posted January 5, 2010 Report Share Posted January 5, 2010 Now that we are in the new year, has anyone noticed any difference in the price of booze? No, I have not noticed any increase in prices. Long may that last Link to comment Share on other sites More sharing options...
rucus7 Posted January 5, 2010 Report Share Posted January 5, 2010 No, I have not noticed any increase in prices. Long may that last There has been no price increase because of the threatened boycott on this forum. Once more the Internet proves its power. Link to comment Share on other sites More sharing options...
Wino Posted January 7, 2010 Author Report Share Posted January 7, 2010 You can still buy 330 ml of Archa beer for 20 baht and 330 ml of San Mig Lite for 40 baht? Looks like nothing has changes even after AFTA has come into play. Link to comment Share on other sites More sharing options...
Wino Posted February 8, 2010 Author Report Share Posted February 8, 2010 No change in prices that I am aware of. AFTA and excise tax has made no difference. Link to comment Share on other sites More sharing options...
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