The Excise Department plans to restructure the excise tax on liquor and beer to close loopholes, says director-general Ekniti Nitithanprapas.
He said the department is holding discussions with the private sector to ensure the tax structure is appropriate and fair.
Even though the department recently restructured the excise tax by replacing factory-based prices with retail-based prices for tax calculations, new beverage products are being launched that fall into tax loopholes, such as zero-alcohol beer, said Mr Ekniti. Such products are subject to non-alcoholic beverage taxes.
Korean soju, a mixture of distilled and fermented liquor that is gaining popularity in the Thai market, is taxed under the category of fermented spirits at 10%, lower than the 20% for distilled spirits (excluding rice whisky), which seems to be inappropriate for this type of liquor, he said.
Mr Ekniti said the restructuring is not intended to increase tax revenue, but to address the rampant tax loopholes.
If zero-alcohol beer is taxed in the alcohol category, it would be subject to lower or zero taxes as it is alcohol-free, he said.
The department needs to consult with the relevant public and private sector parties, including the Public Health Ministry, to find a solution that is fair and equitable to all, said Mr Ekniti.
He said the current overlapping beverage tax structure may be exploited for tax evasion. The department plans to revise the ministerial regulations to address the trend and solve the problem, said Mr Ekniti.
In addition, the department plans to engage in more public participation to oversee tax payment of liquor and beer products.
Liquor and beer taxes are some of the top revenue earners for the department.
In fiscal 2022, the department generated revenue of 599 billion baht, with beer contributing 85 billion, ranking third after fuel and automobiles, followed by liquor at 59.2 billion, ranking fourth.