New Thai beer tax - as a response to ASEAN free trade.

**Chairman Mao** · 24-12-2009, 05:43 PM

As of Jan 1st the ASEAN free trade agreement takes affect with regards to beer. 0% import tax on Beer Lao. Sounds bloody good to me.

But wait, thai can't take it that their beer isn't going to be good enough when priced fairly with new competition. Gotta get around this Asean free trade agreement some how.

Ban their advertising. Good one.
Plus a new tax for beers will help.

Wonder what loophole they'll find in order for thai beer to be exempt?

Will drinkers toast new liquor tax?
By NOPHAKHUN LIMSAMARNPHUN
THE NATION
Published on December 24, 2009

Excise tax ceiling to be raised; foreign beers, liquors will be subject to a zero import duty under Afta scheme

An executive decree will be issued shortly to raise the excise tax ceiling on alcoholic beverages in preparation for the implementation of the Asean Free Trade Area (Afta) on January 1, a source from the Finance Ministry said yesterday.
The Cabinet is expected to consider the measure on Tuesday, just before the arrival of 2010 when all imported beer and liquor will be subject to a zero import duty under the Afta scheme.

Finance Minister Korn Chatikavanij yesterday declined to comment on the planned excise hike.
However, official sources say the excise ceiling on beer, for instance, is expected to rise from Bt100 to Bt460 per litre based on alcohol content, while that of distilled white spirits and whisky will rise from Bt120 to Bt400.

PREVENTING DUMPING

The planned hike should help prevent cheaper foreign-made alcoholic drinks being dumped in the Thai market once liberalisation is in place.
"Alcoholic beverages damage consumers' health, so it's necessary to use the excise tax as a measure |to manage consumption. Compe-tition in the alcohol industry should also be curbed because fiercer competition as a result of market liberalisation will lead to more consumption.

"In addition, the government should enforce a law banning the advertisement of these products to prevent further damage to public health," said a ministry official, who asked not to be named.
Under the Afta scheme, Thailand and other Asean countries will be opening up their domestic markets to boost trade within the 10-country grouping.

From January 1, several types of products - including alcohol - will benefit from the zero import tax rate, allowing an influx of cheaper beer and liquor from within the region.
At present, Thailand is the largest market for alcoholic beverages in Asean, followed by the Philippines and Vietnam.

Sources say Chinese beverage firms with production facilities inside Asean are expected to flood the Thai market with cheap beer and liquor. In addition, some European firms are already using production facilities within Asean to supply low-cost products to the Thai market.

If the excise tax ceiling does not get adjusted before Afta is enforced, Thai producers will be hit hard by the dumping of foreign products.

Beside beer, competition in the distilled white spirits and whisky market segments is also expected to be fierce due to the reduction of import duty.

**dirtydog** · 24-12-2009, 06:28 PM

I read that story earlier today, it sort of seems to be defeating the object of 0% import duty, I mean they have agreed to this with other Asean countries, and now they have found a way round it, seems a bit pointless dealing with Thai's really.

**Chairman Mao** · 24-12-2009, 06:31 PM

seems a bit pointless dealing with Thai's really.

Yes.

Most things here point to this conclusion.

"In addition, the government should enforce a law banning the advertisement of these products to prevent further damage to public health,"

Although I'm pretty sure that Thai beer damages just as much health as foreign beer, therefore the advertising ban will include thai beer too?

**Thetyim** · 24-12-2009, 06:45 PM

Originally Posted by Chairman Mao

official sources say the excise ceiling on beer, for instance, is expected to rise from Bt100 to Bt460 per litre based on alcohol content

Have I read that right ?
Excise duty on beer will be 100-460 baht per litre

**jandajoy** · 24-12-2009, 06:55 PM

Does it mean you can bring in as much as you want across the river?

I've never really understood this whole tax/excise business.

**Tom Sawyer** · 24-12-2009, 06:57 PM

Originally Posted by dirtydog

I read that story earlier today, it sort of seems to be defeating the object of 0% import duty, I mean they have agreed to this with other Asean countries, and now they have found a way round it, seems a bit pointless dealing with Thai's really.

Yes - as usual completely untrustworthy. But we all remember what the biggest Thai brewer of all did to Carslberg after they developed Chang for him..so it should come as little surprise.

I agree with you, I don't why ASEAN even bothers with the Thai. They must know they won't hold up their end of the bargain.

Also it's unclear to me how raising the alcohol tax makes the Thai beer cheaper than the import beer. If it applies to all it doesn't matter.

**Fondles** · 24-12-2009, 06:58 PM

does this mean my beloved Pure Blonde beer from Australia is going to get cheaper, at 2400b for a slab its a bit exxy at the moment.

**crippen** · 24-12-2009, 07:03 PM

Originally Posted by Thetyim

Originally Posted by Chairman Mao

official sources say the excise ceiling on beer, for instance, is expected to rise from Bt100 to Bt460 per litre based on alcohol content

Have I read that right ?
Excise duty on beer will be 100-460 baht per litre

Per litre of pure alcohol,beer is about 5%,so duty is in the order of 5-20 baht per litre of beer.

**Chairman Mao** · 24-12-2009, 07:06 PM

Originally Posted by Fondles

does this mean my beloved Pure Blonde beer from Australia is going to get cheaper, at 2400b for a slab its a bit exxy at the moment.

Not unless australia is in Asean, no.

**jandajoy** · 24-12-2009, 07:09 PM

And importing, by hand from Laos ?

Will it be like UK / France? As much as you like for personal consumption.

I've got a few mates, including members here, who'd appreciate some Lao beer.

**StrontiumDog** · 24-12-2009, 07:10 PM

Amazing Thailand.

**Fondles** · 24-12-2009, 07:11 PM

Originally Posted by Chairman Mao

Originally Posted by Fondles

does this mean my beloved Pure Blonde beer from Australia is going to get cheaper, at 2400b for a slab its a bit exxy at the moment.

Not unless australia is in Asean, no.

Bugger, fuck em them.

**Chairman Mao** · 24-12-2009, 07:11 PM

Originally Posted by Tom Sawyer

Also it's unclear to me how raising the alcohol tax makes the Thai beer cheaper than the import beer. If it applies to all it doesn't matter.

Yes, but will it?

If so why are they even mentioning the Asean agreement.

As an increase across the board will still make Thai beer more expensive than the imports, it will still be harmed just as much, or probably even more so. Their stated aim is to protect thai products. And appear to be searching for a loophole to continue taxing imported products, albeit under a different name.

**Thetyim** · 24-12-2009, 07:13 PM

Originally Posted by crippen

Per litre of pure alcohol,beer is about 5%,so duty is in the order of 5-20 baht per litre of beer.

Thanks but it still doesn't quite make sense to me.
Why the wide margin?
Will it be 100 baht for thai beer and 460 baht for imported beer?

**crippen** · 24-12-2009, 07:15 PM

100 bht for week stuff (2.5 deg) then 450 bht for really strong.??

**Chairman Mao** · 24-12-2009, 07:16 PM

Originally Posted by jandajoy

And importing, by hand from Laos ?

Will it be like UK / France? As much as you like for personal consumption.

I've got a few mates, including members here, who'd appreciate some Lao beer.

Probably depend on the Thai customs officer on duty.

Shelves of cheap Beer Lao on BKK supermarket shelves would certainly be a bonus. Even if the thai criminals pass their new tax law I won't care about the extra 20baht or whatever as it simply shits over all the Thai beers.

**Gerbil** · 24-12-2009, 07:22 PM

Originally Posted by Chairman Mao

Shelves of cheap Beer Lao on BKK supermarket shelves

Wont happen.

**dirtydog** · 24-12-2009, 07:24 PM

^If it sounds too good to be true...........

**Chairman Mao** · 24-12-2009, 07:25 PM

Should. As agreed by Asean.

That apparently don't mean much to thai though, as they're racing to invent a new tax law in order to get around the agreement.

**Tom Sawyer** · 24-12-2009, 07:27 PM

Originally Posted by Chairman Mao

Originally Posted by Tom Sawyer

Also it's unclear to me how raising the alcohol tax makes the Thai beer cheaper than the import beer. If it applies to all it doesn't matter.

Yes, but will it?

If so why are they even mentioning the Asean agreement.

As an increase across the board will still make Thai beer more expensive than the imports, it will still be harmed just as much, or probably even more so. Their stated aim is to protect thai products. And appear to be searching for a loophole to continue taxing imported products, albeit under a different name.

Maybe it's just an excuse to create a new tax then. With usual Thai obfuscation, kerfuddling, bemuddling nonesense along the way?

**jandajoy** · 24-12-2009, 07:27 PM

I'll talk to my friendly customs bloke on Saturday when we cross over.
Odds are he'll know nothing, but it's worth a shot.

**Gerbil** · 24-12-2009, 07:28 PM

Originally Posted by Chairman Mao

Should. As agreed by Asean.

Nothing to do with Asean. The major supermarkets will not stock non Thai brewed beers (with a couple of very low volume exceptions). It's not a price matter, just a 'business arrangement' with the breweries.

**Chairman Mao** · 24-12-2009, 07:30 PM

Think mom n pop shops, and alcohol retailers will be doing an extreme increase in trade then.

**Tom Sawyer** · 24-12-2009, 07:36 PM

Originally Posted by Gerbil

Originally Posted by Chairman Mao

Should. As agreed by Asean.

Nothing to do with Asean. The major supermarkets will not stock non Thai brewed beers (with a couple of very low volume exceptions). It's not a price matter, just a 'business arrangement' with the breweries.

That explains why it's so hard to find a flat or box of Tiger..and why Kloster disappeared - was always hard to find a 'fresh' batch - usually 5 or 6 months old and undrinkable (though I think Kloster was bottled by Singha).

**Gerbil** · 24-12-2009, 07:41 PM

Originally Posted by Chairman Mao

Think mom n pop shops, and alcohol retailers will be doing an extreme increase in trade then.

Actually, they have it worse. Many of them already have to commit to one distributor or another and can only get one brand of beer. That's why you'll find whole areas which are 'Chang only', or 'Leo only' zones.

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