Mini-mart draught beer tax mulled

Mini-mart draught beer tax mulled

The Excise Department found issue with sales of draught beer at convenience stores and is ready to regulate the business if any operators offer the product.

Convenience stores can legally use an automatic machines to dispense beer for sale if they have a licence to distribute alcoholic drinks, but the department does not support the sales, said director general Krisada Chinavicharana.

Brewers need a licence to sell beer on tap, but not convenience stores, he said.

As convenience store operators have voluntarily cancelled the sale of draught beer, the Excise Department will not issue any regulations to supervise the business, as such a move could be perceived as encouraging operators to start selling the product.

CP All, which runs 7-Eleven stores in Thailand, recently announced an end to the sale of draught beer at its outlets in the face of opposition after it launched a pilot project at 18 stores last month. FamilyMart, another convenience store operator, has also followed in the footsteps of CP All by abolishing such sales.

Separately, Mr Krisada said that nightclubs only contribute minimal revenue to the Excise Department. During the first 10 days of the 2018 fiscal year, the department obtained one million baht from bars and nightclubs.

He said that the Excise Department has issued additional regulations, requiring all restaurants with live music, alcohol sales and business hours ending after midnight to pay tax.

According to the Excise Department's previous regulations, only night clubs with dance floors were subject to the tax. But in the Santika pub case, a court ruled the venue was liable for the tax as it served alcoholic drinks and people danced, prompting the regulatory change.

Mr Krisada recently said the Excise Department's revenue target of 600 billion baht for this fiscal year is reachable based on the country's economic momentum. The department's revenue goal of 600 billion baht is 7% higher than its 2017 fiscal year revenue collection of 560 billion.

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