Thai Cabinet Approves Tax Adjustments on Locally Brewed Alcoholic Beverages to Bolster Tourism Hub Status

National—

On January 2nd, 2024, Mr. Lawan Saengsanit, the Director-General of the Revenue Department, publicly revealed that the Thai cabinet approved an adjustment on excise taxes and duties structures on local liquor to promote Thailand as a central hub for tourism.

Thai Excise Department officials amended the ad valorem tax rate for locally brewed alcoholic beverages to 0% ad valorem tax and 150 baht per liter with 100 degree proof, reduced previously from 10%.
Additionally, Thai locally distilled alcoholic beverages, such as Soju, were another category of brewed beverages, applying 0% ad valorem tax and 255 baht per liter with 100 degree proof.

For wine and fruit wine, the tax collection structure was revised, removing the price-tiered tax system and implementing a single tax rate to align with international standards. The new rates were 5% ad valorem tax and 1,000 baht per liter with 100 degree proof for wine, and 0% ad valorem tax and 900 baht per liter with 100 degree proof for fruit wine.

Additionally, there was a modification in the tax rate for entertainment services from 10% of service revenue without expense deduction to 5%, implemented as a short-term measure due to last until December 31st, 2024. These measures aimed to boost tourism and support businesses affected by COVID-19.

The Customs Department also adjusted the customs tax structure for wine products, exempting customs duties for 21 items from the previous rates of 54% and 60%.

“These measures will be enacted as ministerial regulations and announcements respectively, by the end of January 2024. The promotion of Thailand overall as a tourism hub will increase net revenues from excise taxes and customs duties by approximately 401 million baht per year and expand the Thai economy by 0.0073% compared to previously without the measures. Additionally, it will increase tourism sector revenues from 1.492 trillion baht to 1.495 trillion baht, a growth of 2.9 billion baht,” Lawan remarked.