In order to close current tax loopholes, the head of the excise department disclosed plans to reform the excise tax structure on wine and beer.
A formal discussion with the private sector is currently taking place, according to Ekniti Nitithanprapas, to provide a just and suitable tax system.
In addition, many newly introduced beverages, including beers without alcohol, are theoretically going through the cracks of taxes despite the recent tax restructure from factory-based pricing to retail sales-led calculations, according to Ekniti.
These flaws enable the taxation of these products as non-alcoholic beverages.
A increasing trend involving Korean soju on the Thai market has drawn criticism.
For the multi-process alcoholic beverage that goes through both fermentation and distillation, the tax class for fermented spirits is only 10%.
With the exception of rice whiskey, the significant 20% tax on distilled spirits is inadequate in comparison. Ekniti claims that the comparatively low tax rate feels out of place for such beverages.
Think about drinks with no alcohol in them. Despite the fact that they are non-alcoholic, they may come under the alcohol category but pay little to no tax.
Collaboration with key public and private sector organizations, particularly the Ministry of Public Health, will be necessary to achieve these reforms.
Ekniti stressed that the goal of this tax revision is to come to a fair decision that strikes a balance between the interests of all parties involved.
Due to the current overlapping and potentially abusive beverage tax scheme, Ekniti promised that ongoing tax evasions will be addressed.
According to the Bangkok Post, as a result, the department is getting ready to update the ministerial legislation in order to stop emerging trends and address the current situation.
It is important to keep in mind that the Excise Department receives the majority of its funding from these kinds of taxes. The department’s revenue for the fiscal year 2022 was 599 billion baht.
With an astounding 85 billion, beer was the third most lucrative tax after those on petrol and automobiles. Alcoholic beverages came in fourth with 59.2 billion.
Additionally, greater public participation will be sought in the oversight of beer and liquor tax payments.
Visit http://www.excise.go.th/excise/index.htm for further information.
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