The cabinet yesterday approved a draft ministerial regulation which will loosen curbs on liquor production by small-scale distillers.
Government spokesman Anucha Burapachaisri said the cabinet gave the green light to a Finance Ministry regulation aimed at amending the 2017 Excise Tax Act and improving the criteria for liquor production and licence applications.
He said some firms have complained that the 2017 Excise Tax Act which controls liquor production is too stringent and called for it to be relaxed.
"The new regulation should address their concerns," the spokesman said.
"This shows that the government does not favour major distillers as the new regulation will make it easier for communities and small-scale distillers to produce liquor with quality controls and standard requirements in place," he said.
Deputy Prime Minister Wissanu Krea-ngam said the new rule serves as a middle ground between the more stringent one under the Excise Tax Act and a bill seeking to amend the excise tax law proposed by the Move Forward Party (MFP).
He said the MFP's proposals are too lax and could harm the health of consumers while also affecting tax collection. The bill will be redundant once the new ministerial regulation takes effect, he said.
Dubbed the "progressive liquor bill", it passed its first reading in parliament in June and is now being scrutinised by a House panel.
Under the new regulation, minimum thresholds on registered capital and production capacities will be lifted.
Natthakorn Uthanesut, the spokesman of the Excise Department, said the changes would cover two types of licences -- one for the production of fermented beverages and the other for communities' locally distilled spirits.
Currently, the production of fermented beverages such as beer requires at least 10 million baht in registered capital, allowing for an annual production capacity of 100,000 to 1 million litres.
When the new regulation takes effect, these requirements will be lifted, though product quality and production facilities must meet the standards set by the Department of Industrial Works and the Pollution Control Department, Mr Natthakorn said.
Permission from the Excise Department will be required for production for household consumption, with 200 litres allowed annually. The production capacity for community liquor will also be increased to allow for 50-horsepower machinery and 50 workers, he said.