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  1. #1
    Mid
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    Thailand : Tax cut for wine flagged

    Tax cut for wine flagged
    31/03/2012

    The price of imported wines will drop if Deputy Finance Minister Thanusak Lek-uthai has his way.

    He has proposed a new method of taxing wine aimed at cutting imported wine prices and encouraging importers to pay tax.

    He cited two current methods of calculating import duties on wine. One is taxing 60% of the value of each imported bottle, and the other is taxing at 100 baht per litre of 100% alcohol, which will vary by the alcohol content in each bottle.

    The Excise Department uses the method that provides the highest tax value.

    Mr Thanusak said the department gains more tax from the value method, as there are various grades of imported wines ranging from a few hundred baht to hundreds of thousands of baht each.

    The high excise tax on imported wines makes retail prices too high, encouraging importers to avoid paying duties.

    The Excise Department receives 1 billion baht from 7.9 million litres of imported wine declared yearly, which is far less than actual consumption.

    The newly proposed import duty method is based on quantities of wine instead of considering the value of each bottle of wine.

    "The lower import duty will encourage those illegal importers to enter the system," he said. "Once legal and illegal ones are priced not much differently, it is no longer worthwhile to do it illegally."

    Some importers are also declaring import prices for wine that are cheaper than the actual value. "If we use the same tax rate on quantities, it would tax the imported wine at the same rate, either for the luxury or the cheap ones."

    The change will boost wine tax revenue to the government from 1 billion baht to 4-5 billion baht.

    bangkokpost.com

  2. #2
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    AS ever, the Thai can't do anything without making a pig's ear out of things.

    The way I read this is the price of a winebox, currently the only sensible way of satisfying the civilised need for a glass of wine or two with every meal at home in this silly country, will increase.

  3. #3
    Member zeusbheld's Avatar
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    if the tax cut reduces the net price of a bottle of wine (or liquor) then it's the news i've been waiting for. if not, not.

  4. #4
    Member zeusbheld's Avatar
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    i meant "retail price" not "net price"... couldn't find an edit button to fix it though. is there one here?

  5. #5
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    Quote Originally Posted by Mid
    Thailand : Tax cut for wine flagged
    Quote Originally Posted by Mid
    The change will boost wine tax revenue to the government from 1 billion baht to 4-5 billion baht.
    Mmm...

    It doesn't look like they are gonna reduce wine prices/taxes, looks like they are trying to get more revenue from 'illegal wine imports'; are these so massive that they can add 3-4 billion baht. Is 80% of wine drunk in Thailand 'illegally' brought in and avoiding taxes???

    Reeks of Thai insanity to me...
    How do I post these pictures???

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