Thread: Officials inspect shops to prevent hoarding before new excise rate takes effect

The Excise Department has assured the public that new taxes for consumer goods which will begin to be enforced on Sept 16 will not cause difficulties and ask people not to hoard goods.

Somchai Poonsawat, the director-general of the Excise Department, said that the department will be forwarding the new tax proposals for the cabinet’s approval on Sept 12.

These new tax brackets cover goods such as alcohol, cigarettes and playing cards.

New taxes for other goods will be announced in the Royal Gazette and will become effective Sept 16.

To allay the public’s concern over possible hoarding by shops, he confirmed that inspections by the departments officials have not found anything of the sort.

He went on to state that shops had no need to hoard any goods as the new taxes was not excessive and would not unduly burden consumers.

Also a grace period of two years will be allowed for producers of goods that previously went untaxed such as sugar-sweetened beverages so that adjustments can be made.

Meanwhile, Somdet Srisawat, deputy director-general of the Excise Department, said new businesses such as tea and coffee which are exempted from taxes but now are subject to taxation of 1-1.50 baht under the new law.

They will be given grace period to adapt themselves, he said.

The new law will affect goods that are harmful to health and environment, luxury goods such as perfumes, and glasswares, he said.

Officials inspect shops to prevent hoarding before new excise rate takes effect - Thai PBS English News

I heard that cigarettes were going up 10 baht and a big bottle of beer is going to increase by 7 baht. When this will happen is the mystery. It could be in 3 days or over the next 6 months gradually. If anyone can post what is going on I'd be grateful to know. Searching around google only gives you part of the picture.

^ I assume on top.
I buy Winston, which are 87b, although there's plenty of various Malay ciggies available around here for 200 b a carton, just not my flavour. I guess those black marketeers will be laughing as they will be able to raise their prices too, at no rise in their costs.
There's also "brand" name beers come in from Malaysia too, cheap as chips.

I read something last week to the effect that raising prices on beer will cause health problems as all the somchais switch to an exclusively lao khao diet.

^ There's merit in that line of thought. It will be ignored, of course. Tobacco Monopoly is stronger than the two beer baron "lobbyists".
Plus, said beer barons will take stakes in lao khao.
Actually, I think one of them has already; wasn't there a story about that.

I brought back a packet of Marboro lights from Cambodia and a bottle of Jack Daniels.

The cigs were like sawdust and I coughed my guts out for a week and the Whisky was like cheap Hong Tong and boy did I get a headache after drinking that.

It won't be long until we're all supping the same booze.

Mental note to self:
stock the spare room with beer & cigs this week.

^
For Lao Khao I prefer the locally produced moonshine.

As the new tax rates that will see higher prices for alcoholic beverages and cigarettes are going to be effective tomorrow (Sept 16 ), shortfalls of the two demerit goods are now reported with wholesalers and distributing agents started hoarding.

Several retailers said they were rejected sales from agents during the past few days ahead of Sept 16 when the new excise tax law will take effect.

Consumers also complained they could hardly buy the two goods at old prices.

Hoarding prevails the market although commerce and excise officials has made joint inspections of the goods in the markets to make sure there is no profiteering or no hoarding.

The Commerce Ministry and the Finance Ministry yesterday (Sept 14) deployed officials to inspect shops and markets to prevent traders from hoarding alcoholic drinks, cigarettes for making profits when the new tax rate comes into effect.

Anyone who refuses to sell these products or hoards them to fetch higher prices will face a legal action under the Goods and Service Act, punishable by a maximum seven years in jail and/or a maximum fine of 140,000 baht, according to Deputy Commerce Minister Sonthirat Sonthi-Jirawong.

He said people can call hotline 1569 if they come across any trader violating the law.

Meanwhile market survey by ThaiPBS showed that some grocery stores admitted to have purchased more alcoholic beverages and cigarettes for hoarding to get some profits after Sept 16.

One grocery store owner at Pathumwan area Kanpanisa Sithong said prices of alcoholic beverages and cigarettes have already gone up–10 baht higher for a cigarette carton.

“However, I decided not to buy alcoholic beverages as prices have also gone up high although the exact price after the tax adjustment is still unknown,” she said.

Another retailer Sompong Chaisaensuk in the same area said he could not buy both alcohol and cigarettes to resell because wholesalers and agents have hoarded the goods to await the new tax rates come in force tomorrow.

He said higher tax for both goods would only turn smokers and drinkers to resort to more smuggled goods.Meanwhile, Director of Thailand Tobacco Monopoly, Daonoi Suttiniphapunt, said the new excise tax rate prompted TTM to increase prices of all 16 cigarette brands but it will try to cap the suggested retail price ceiling at 60 baht per packet.


Hoarding prevalent ahead of new alcohol, tobacco excise tax - Thai PBS English News

Thailand sets new excise tax on alcohol, cigarettes

BANGKOK, Sept 16 (Reuters) - Thailand’s new excise tax law will see higher prices of certain goods, including some alcoholic beverages and cigarettes, and should generate about 12 billion baht ($360 million) in tax revenue, a senior government official said on Saturday.

The law, effective on Saturday, is aimed at making tax collection more transparent and should not have a big impact on overall product prices, Somchai Poolsavasdi, director-general of the Thailand’s Excise Department, told a briefing.

“Overall, this will increase tax revenue by 2 percent,” he said.

The tax on alcohol will increase by up to 30 baht per bottle, while beer will rise by 0.50 baht per can and 2.66 baht per bottle, the official said.

The tax on imported wine will rise at least 110 baht per bottle, and cigarettes will increase by 2 to 15 baht per pack, the official said.

Thailand sets new excise tax on alcohol, cigarettes | Reuters

Not only traders are 'hoarding'.

Bought some Winstons from 7-11 today (Sunday). Still the same price. Bought a bottle of Hong Tong from Tesco Lotus this afternoon; same price as before.

Originally Posted by Maanaam

Bought some Winstons from 7-11 today (Sunday). Still the same price. Bought a bottle of Hong Tong from Tesco Lotus this afternoon; same price as before.

Don't expect the price hikes to kick in soon locally.

^ I was expecting the price hikes to kick in immediately. That's what the fear of shops hoarding was about.
Perhaps not for tax-paying shops like 7-11, but the corner stores without electronic stock-keeping and sales information would make a tidy profit from hoarded stock bought at old prices and sold at the new price.

The price hike will make zero difference to the drinker or smoker.

The only thing that happens is that the Government makes more money from taxes.

Beer Chang at the Mom and Pop today is 60B a large bottle, Tops was selling for 54B/bottle.

I wonder what "White spirits" are supposed to be, never seen one with less than 28 degrees.

So "Carbonated Drinks without Sugar" are classed as "Sugary Drinks".

Fucking eejits.

It's been a couple of months now. My ciggies have not increased and in fact my Hong Thong has gone down 7 baht last week at Tesco Lotus. 7-11 prices remain the same.
Corner shops, as predicted all raised their prices by 10 baht on a bottle.

^ But have decreased in tax.

Originally Posted by Maanaam

It's been a couple of months now. My ciggies have not increased and in fact my Hong Thong has gone down 7 baht last week at Tesco Lotus. 7-11 prices remain the same.
Corner shops, as predicted all raised their prices by 10 baht on a bottle.

^ But have decreased in tax.

Yeah, just hype but a bottle of wine is now over 500 baht. Way to pricey. Don't the junta like wine?