Govt to cut alcohol taxes and tariffs

[STEVE G]

Perhaps this government is a bit less killjoy than the last:

Thailand's cabinet has approved a tax cut on alcoholic beverages and entertainment venues to boost tourism, a government spokesperson said on Tuesday (Jan 2).

Taxes on wine will be reduced from 10 per cent to 5 per cent and on spirits from 10 per cent to zero, Chai Wacharonke told reporters, adding that excise tax on entertainment venues will be halved from 10 per cent to 5 per cent.
https://www.channelnewsasia.com/busines ... sm-4020711

[HHTel]

And you think the punters will get the benefit?
I don't think so ..... TIT.

It's a windfall for the bars, restaurants and clubs.

[Big Boy]

As far as I can see, this government is heading for a massive car crash. Give away this, give away that, reduce revenue schemes, maintain numerous subsidies. Where is the money to finance all of this coming from. I thought the country was meant to be broke.

[HHTel]

Tax revenue losses would be offset by additional tourist receipts, Finance Ministry Permanent Secretary Lavaron Sangsnit said in a separate briefing.

[Dannie Boy]

Tax revenue losses would be offset by additional tourist receipts, Finance Ministry Permanent Secretary Lavaron Sangsnit said in a separate briefing.

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[buksida]

Tourist numbers are way down, and Malays (who mostly don't drink) make up the top arrivals now (mostly weekend border runners) ... so can't really see billions of baht flowing in through that avenue (though cheaper wine would be nice).

[Big Boy]

Yes, but there are contradictory reports also published yesterday calling it bollox. I guess its a case of believing which ever version you want to believe, but this Gov't IMHO are spending cash they don't have. Even this is a gamble on more tourists coming and spending cash.

[caller]

I havent seen anything about such cuts n the English languauge media here. It's such a big change, I would have expected such media to cover it.

[Big Boy]

I read about it yesterday - not sure what the publication was. I'll try to find it.

[Big Boy]

This is the one I read https://thethaiger.com/news/national/th ... nd-economy

[buksida]

Hmm ... "The Thai government has announced a tax reduction on local alcohol" ... "reducing domestic alcohol tax to 0%,"

If I read that right, it only applies to locally produced stuff (OTOP rice wine, fruit punch, alco-pops, etc) so anything imported (decent beer, wines, and spirits) will remain ridiculously expensive as the tax on the good stuff is triple figures.

[Big Boy]

Of course, and any reference to enticing tourists is a complete con. They will assume 'local' means Chang, Leo or Singha. Most won't even realise there is OTOP rice wine, fruit punch, etc.

[HHTel]

Surely local alcohol would include Samsong and the like, plus Chang, Leo and Singha.

[STEVE G]

According to the Bangkok Post, the import tax on imported wine is also gone for one year:
https://www.bangkokpost.com/business/general/2716918

[buksida]

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.