Thailand’s beer maker, Boon Rawd Brewery, has threatened on November 19 to take legal action against Thailand’s Excise Department, Bangkok post reported November 21. The brewer is unhappy after being forced to pay higher duties on its newly-launched beer Singha 70, introduced in the market last month. Singha 70 was launched with the purpose to celebrate the company’s 70th anniversary.

On 13 October the Excise Department instructed to up the factory price of the beer, saying that the name and image on the label is too similar to Singha Beer. The factory price is used to calculate the tax base.

Boon Rawd says that Singha 70 differs from Singha in quality, taste, price and image. “We feel the company was mistreated and prevented from competing fairly in the beer market,” company president Santi Phirom Bhakdi told The Nation.

The brewer plans to appeal the ruling. If unsuccessful, it says it will sue for damages. Bhakdi said there was nothing in the law books stating that the calculation of taxes paid on alcoholic beverages should be based on the name or label on the product.

21 November, 2003