E-Malt.com News article: Thailand: Craft beer and local spirits producers oppose planned shift in excise tax calculations

Thailand's craft beer and local spirits producers have opposed a planned shift in excise tax calculations based on retail prices, warning the policy would disproportionately burden small operators already facing structurally higher production and distribution costs, the Bangkok Post reported on May 15.

Taopiphop Limjittrakorn, a People's Party (PP) MP and advocate for alcohol liberalisation, on Thursday received a petition from the Craft Beer Business Trade Association and the Thai Local Spirits Association urging the Excise Department to revise the tax structure before it takes effect on Friday.

The groups argue the retail price-based method does not reflect market realities and would raise the tax burden on smaller producers relative to major manufacturers.

Mr Taopiphop said efforts to liberalise Thailand's alcohol industry remained incomplete, with small brewers and distillers still constrained by advertising restrictions, unequal market access and taxation.

"The key issue is taxation," he said, referring to a March notification introducing new criteria for surveying retail prices and determining the most common "modal price" used as the tax base.

A representative of the Craft Beer Association said Thailand currently taxes alcohol based on both alcohol content and retail value, with the latter accounting for 22% of the retail price.

The association said smaller producers face higher operating and distribution costs due to lower production volumes and weaker bargaining power, making retail price-based taxation unfair. It proposed a tiered tax system based on production volume to help smaller operators expand and reinvest.

Nattachai Uengsriwong, chairperson of the Thai Local Spirits Association, said applying the same pricing formula to both large and small producers would widen the competitive gap.

"Small producers cannot reduce costs in the same way as large firms, so their retail prices are higher. When taxes are calculated from those prices, the burden increases further," he said.

Mr Taopiphop reiterated support for an excise system based solely on alcohol content, saying it would be simpler and more transparent. He also warned that vague pricing standards could encourage inconsistent enforcement and corruption.

He called on Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, a former Excise Department director-general, to review the policy and involve industry groups in revising the structure.

The Excise Department has defended the new criteria, insisting they are not a tax increase but an effort to improve transparency and better reflect actual consumer prices.


15 May, 2026