Thai Cabinet Approves Tax Adjustments on Locally Brewed Alcoholic Beverages to Bolster Tourism Hub Status


On January 2nd, 2024, Mr. Lawan Saengsanit, the Director-General of the Revenue Department, publicly revealed that the Thai cabinet approved an adjustment on excise taxes and duties structures on local liquor to promote Thailand as a central hub for tourism.

Thai Excise Department officials amended the ad valorem tax rate for locally brewed alcoholic beverages to 0% ad valorem tax and 150 baht per liter with 100 degree proof, reduced previously from 10%.
Additionally, Thai locally distilled alcoholic beverages, such as Soju, were another category of brewed beverages, applying 0% ad valorem tax and 255 baht per liter with 100 degree proof.

For wine and fruit wine, the tax collection structure was revised, removing the price-tiered tax system and implementing a single tax rate to align with international standards. The new rates were 5% ad valorem tax and 1,000 baht per liter with 100 degree proof for wine, and 0% ad valorem tax and 900 baht per liter with 100 degree proof for fruit wine.

Additionally, there was a modification in the tax rate for entertainment services from 10% of service revenue without expense deduction to 5%, implemented as a short-term measure due to last until December 31st, 2024. These measures aimed to boost tourism and support businesses affected by COVID-19.

The Customs Department also adjusted the customs tax structure for wine products, exempting customs duties for 21 items from the previous rates of 54% and 60%.

“These measures will be enacted as ministerial regulations and announcements respectively, by the end of January 2024. The promotion of Thailand overall as a tourism hub will increase net revenues from excise taxes and customs duties by approximately 401 million baht per year and expand the Thai economy by 0.0073% compared to previously without the measures. Additionally, it will increase tourism sector revenues from 1.492 trillion baht to 1.495 trillion baht, a growth of 2.9 billion baht,” Lawan remarked.

Kittisak Phalaharn
Kittisak has a passion for outgoings no matter how tough it will be, he will travel with an adventurous style. As for his interests in fantasy, detective genres in novels and sports science books are parts of his soul. He works for Pattaya News as the latest writer.