NEWS
THAILAND PLANS TO TAX NO & LOW ALCOHOLS IN FISCAL 2023
By Siulan Law Mathews DipWSET
23-9-2022
Credit: David Mathews
The government of Thailand is planning to increase excise tax on all types of alcohols, including no & low alcohols, in the fiscal year 2023 to boost government coffer.
Director-General of the Revenue Department Ekniti Nitithanprapas told local media earlier this month that the aim of the tax hike is to reduce alcohol consumption and improve the overall health of the public, as more and more young Thais are drinking heavily.
The no & low category is currently tax-free in Thailand. Ekniti said a lower tax rate for non-alcoholic drinks can be expected, while tax will be increased with increasing alcohol by volume.
A decision on the tax scheme, level of increase and the date to implement them will be decided later, he said.
Ekniti also hinted that the government is also considering raising taxes on other products which is harmful to the environment and public health, including bio-jet-fuel, bioplastics, electronic cigarettes and carbon.
“The department has a strategy to drive the economy with excise tax under the environmental, social and governance principles,” Ekniti said. “Our principle is to collect less tax or not collect any tax for environmentally friendly products and services, while taxing products and services that are not in line with these principles.”
The Thai government has set a goal of collecting Baht 567billion (USD15.12b) taxes in fiscal 2023, which is an increase of 13.4 percent compared to the current year.
Critics said if the government’s aim is to reduce alcohol consumption among young Thais, no & low drinks should remain tax-free.
Critics also said e-cigarettes are currently illegal in Thailand, it is unclear how the tax will be applied, unless the government is going to legalise them soon.
(the writer can be contacted at: info@thewinechronicle.com)
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