Thailand: New excise tax structure could lead to increase in beer prices

The Thai Health Promotion Foundation expressed concern on September 2 that the new alcohol excise-tax structure would drive drinkers to consume more cheap white liquor at the expense of their health.

Foundation manager Supreeda Adulyanon said the number of estimated drinkers in the country has remained constant recently. Many people have turned to drinking beer instead of liquor, he said, but the new excise tax structure would cause beer to become more expensive in terms of its level of alcohol in comparison to that of white liquor.

Supreeda worries that drinkers may turn to white liquor, with a resulting increase in health problems.

The Finance Ministry is scheduled to enact a directive enforcing the new tax structure as of September 16. The new tax would be calculated based on retail prices rather than on producer prices as is now done. The new tax would create a level playing field for producers. Some critics have claimed that the current approach works to the benefit of some producers over others.

Those in favour of the new approach argue that market forces should decide retail prices and tax authorities should enforce the law accordingly.

05 September, 2017