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Cabinet approves lower excise taxes for liquor, nightclub services

Cabinet approves lower excise taxes for liquor, nightclub services

BANGKOK: The Cabinet has approved a set of proposals to reduce excise taxes for liquor and entertainment venues, in an effort to boost national revenue through tourism.

alcoholtourismeconomics
By National News Bureau of Thailand

Wednesday 3 January 2024 10:59 AM


Revellers throng on Bangla Rd, Patong, for the New Year. Photo: TAT Phuket

Revellers throng on Bangla Rd, Patong, for the New Year. Photo: TAT Phuket

The proposals, which aim to position Thailand as a tourism hub and encourage spending by tourists, will cut the excise tax imposed on wine from 10% to 5%, and the alcohol duty down from B1,500 per litre to B1,000 per litre, reports state news agency NNT.

As for locally-made liquor, the excise tax will be waived but the alcohol duty for liquor with 7% alcohol volume will remain unchanged.

Lawan Sangsanit, Permanent Secretary of Finance, said the proposals give priority to community-based tourism, improve the quality of local produce, and position tourism-related services as key drivers for the national economy.

He said these new measures are expected to increase tourist spending on alcoholic drinks by 3%, and raise tourist-generated revenue by B2.9 billion, with an average spending per person increased to B43,400.

The Thai government has also introduced a temporary excise tax reduction from 10% down to 5% for entertainment venues which include nightclubs, pubs and bars. The lowered rate will remain applicable until Dec 31, 2024.