Thai government approves increase on alcohol tax

Thailand's government on Wednesday approved an excise tax increase on beer and other alcoholic drinks to 9 percent from 7 percent in a bid to boost government revenue amid global economic slowdown.

Finance Minister Korn Chatikavanij said the increase of excise taxes on liquor, beer and brandy will be effective from Thursday May 7, 2009 onwards. The measure is expected to boost the government's income by 6.3 billion Baht ($179 million), which will be used for investment in infrastructure projects.

The new alcohol excise taxes are 58% on beer (risen from 55%) and 48% on distilled alcoholic drinks (risen from 45%). The excise tax will increase to about 120 Baht/liter from 110 Baht/liter for rice whiskey (aka Lao Kha), 4 or 5 Baht for a large bottle of beer, and about 19 Baht for brandy.

The government's decision to raise taxes did not involve wine and imported whisky because the products are subjected to the maximum rates.

The additional tax revenue from beer and liquor products would be partially used to campaign against alcohol consumption, which has caused diseases and accidents, said Deputy Finance Minister Pruttichai.

Sources: Yahoo, BangkokPost, and The Nation.