PRICES UP
Taxes on spirits and cigarettes rise today
CHATRUDEE THEPARAT & WICHIT CHANTANUSORNSIRI
Cabinet yesterday approved higher excise taxes on spirits and tobacco from today.
Spirits go up by 9-12 baht a bottle and cigarettes by 1-3 baht a pack.
Deputy government spokesman Chodchai Suwanaporn said the cabinet agreed with the Finance Ministry the increase was in order to make competition fairer among the producers of liquor, special liquor, wine and beer.
"Spirits with a higher alcohol content should face higher taxes," he said.
Excise Department director-general Wisudhi Srisuphan said sin tax revenue was expected to increase by six billion baht per year.
At the same time, the higher taxes should lower consumption of spirits by 60-65 million litres a year and cigarettes by 20 million packs. Last year, 450 million litres of alcoholic drinks were consumed in Thailand and 1.7 billion packs of cigarettes.
"The tax increases have been introduced under the old law," he said.
"The department also plans to raise the tax on white spirit when the new excise tax bill is enforced. The same thing will be done with beer."
The government raised the excise tax on white spirit, blended spirit and special spirit, which all have a higher alcohol content than beer and wine.
The cabinet kept the excise tax on beer and wine unchanged yesterday.
The Excise Department now taxes alcoholic beverages based on either the ex-factory price or alcoholic content, whichever is higher.
The tax on white spirit has been doubled to 25% of the ex-factory price, and the calculation based on alcohol content upped to 1.10 baht for each 1% of alcohol per litre, up from 70 satang.
Tax for blended spirit, such as Mae Khong and Sangsom brands, remains at 50% of the value, while the calculation of tax based on 100% alcohol content has been raised to 280 baht a litre from 240 baht a litre.
Tax for special liquor, such as brandy, has been increased to 45% from 40%, and will now be 400 baht per litre. Tobacco tax goes to 80% of its value, up from 79%.
Sudhabodi Sattabusya, senior vice-president of Boonrawd Brewery, producer of Singha beer, said under the new legislation 625cc of white spirit with 40% alcohol would be taxed at 27 baht, up from the current 17 baht.
The minimum 10-baht increase was meant to discourage consumers from drinking.
"The taxes are aimed at increasing government revenue, rather than reducing consumption," he said.
Bangkok Post Aug. 29, 2007
Maybe moonshine will be sold again soon . . .
