Alcohol tax overhaul by Excise Dept planned to shut loopholes

The head of the Excise Department introduced plans to overtake the excise tax structure on alcohol and beer, aiming to remove present tax loopholes. Ekniti Nitithanprapas mentioned a formal dialog is ongoing with the non-public sector to safe an equitable and suitable tax framework.
Furthermore, many new beverage entries available on the market are technically slipping via the cracks of taxation, including beers with out alcohol, regardless of the recent tax restructure from factory-basis pricing to retail sales-led calculations, Ekniti added. These stated loopholes permit these products to fall under the non-alcoholic drinks tax bracket.
Issues surfaced relating to a growing trend within the Thai market: Korean soju. The multi-process alcoholic drink involving each fermentation and distillation has been positioned beneath the fermented spirits tax class at a mere 10%. This falls brief in contrast with the hefty 20% tax utilized to distilled spirits, barring rice whisky. According to Ekniti, this comparably low tax fee feels unfitting for such alcohol.
However, Ekniti said this tax restructuring has not been designed with revenue increase in mind but quite, it is a focused measure to tackle rampant tax evasion.
Take the case of zero-alcohol beers for instance. They could doubtlessly fall into the alcohol class but face little to no tax due to their non-alcoholic nature.
The road to those modifications would require consultation with the suitable authorities in the non-public and non-private sectors, together with the Ministry of Public Health. Under the table of this tax overhaul is to achieve an equitable resolution that balances the interests of all parties concerned, Ekniti underlined.
Ongoing tax evasions as a outcome of overlapping and probably exploitable present beverage tax framework will be dealt with, Ekniti assured. In gentle of this, the department is preparing to transform the ministerial laws to counteract upcoming developments and resolve the problem at hand, reported Bangkok Post.
More public participation may even be sought in the oversight of liquor and beer tax payments.
It’s essential to note that most of these taxes are among the largest sources of revenue for the Excise Department. Through the fiscal year of 2022, the department bagged a hefty 599 billion baht in revenue..

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