Final decision on tap for non-alcoholic beer tariff

Final decision on tap for non-alcoholic beer tariff

A decision on the tariff rate for non-alcoholic beer is expected this month, says the Excise Department.

The Finance Ministry has asked the department to reconsider the rate to be slapped on alcohol-free beer because the details turned in for consideration were incomplete, said director-general Patchara Anuntasilpa.

The department also needs to discuss the issue with the Public Health Ministry, he said.

Mr Patchara said recently that non-alcoholic beer could expect a higher tariff rate than the one for carbonated drinks but lower than for alcoholic beer.

Given the lack of a specific tariff on non-alcoholic beer, for now the Excise Department is applying the non-alcoholic beverage rate of 1.4% of the suggested retail price. Alcoholic beer is charged at 22% of the suggested retail price.

In other news, Mr Patchara said Finance Minister Uttama Savanayana has instructed the Excise Department to study whether additional tax measures should be used as a means to deal with the ultra-fine dust particles polluting the air.

The department has agreed to waive a 2% levy on electric vehicles with effect this year to encourage makers to start producing the cars in Thailand. The first locally made EV is expected to launch in April, Mr Patchara said.

The change in motorcycle tax calculation, based on carbon emissions instead of engine size, came into force on Jan 1 and is expected to help alleviate dust pollution, he said.

He predicted a decline in the department's tax revenue for the January-to-March quarter, with the country still engulfed by negative factors such as the novel coronavirus, drought conditions and the continued delay in the annual budget bill for fiscal 2020.

The deadly virus outbreak has hurt the tourism sector, he said, but tourism and the department's tax collection for beer and alcohol should pick up in April, the month of the Songkran holiday.

The department took in 164 billion baht in tax revenue during the three months to December, slightly exceeding its target, Mr Patchara said.

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