[Wino]

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.nationmul...ss_30119060.php

[Beer Chang]

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.

[Beer Chang]

Or if this just refers to imports I can buy 330 ml of San Mig Lite for 40 baht.

[patong]

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.

[rucus7]

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?

[Wino]

I will drink to that. Sounds like a worthy cause but don't think it has a snowball's chance in hell to work.

[Beer Chang]

Or a snowballs chance in Thailand!

[rucus7]

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.

[Wino]

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.

[Beer Chang]

Wino, on 27 December 2009 - 03:37 PM, said:

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.

[Wino]

Now that we are in the new year, has anyone noticed any difference in the price of booze?

[patong]

Wino, on 05 January 2010 - 03:15 AM, said:

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

[rucus7]

patong, on 05 January 2010 - 04:38 AM, said:

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.

[Wino]

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.

[Wino]

No change in prices that I am aware of. AFTA and excise tax has made no difference.