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Wednesday, May 15, 2024

Alcohol tax overhaul by Excise Dept planned to close loopholes

FILE PHOTO: Alcohol tax reform looms from the Excise Department.

The head of the Excise Department announced plans to overhaul the excise tax structure on alcohol and beer, aiming to eliminate existing tax loopholes. Ekniti Nitithanprapas said a formal conversation is ongoing with the private sector to secure an equitable and suitable tax framework.

Furthermore, many new beverage entries on the market are technically slipping through the cracks of taxation, including beers without alcohol, despite the recent tax restructure from factory-basis pricing to retail sales-led calculations, Ekniti added. These said loopholes permit these products to fall under the non-alcoholic drinks tax bracket.

Issues surfaced regarding a growing trend in the Thai market: Korean soju. The multi-process alcoholic drink involving both fermentation and distillation has been placed under the fermented…

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