Thailand: Finance Ministry considers raising excise tax on zero-alcohol beer

The Finance Ministry plans to raise the excise tax rate on zero-alcohol beer, saying it would discourage people from starting to drink, the ThaiVisa News reported on September 12.

Finance Minister Uttama Savanayana said on September 11 that the Excise Department of the ministry would soon complete a study on raising tax on zero-alcohol beer from the current rate of 14 per cent, the same level as on soft drinks, which is lower than the rate on beer.

The ministry is concerned that zero-alcohol beer may lead to new drinkers switching to alcoholic drinks, said Uttama, adding that the higher tax rate will still be lower than that on beer.

The ministry will also regroup tax rates on beverages. For example, functional drinks such as water mixed with vitamins, or cologne, will be taxed lower than beverages with high sugar content.

The ministry, he said, is also considering whether to delay a new round of tax hike on cigarettes as the state-owned Thailand Tobacco Monopoly has complained about the severe impact on its business from the last tax increases.

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