Brewer lauds request for input on new excise law
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Thai Asia Pacific Brewery, which supplies Heineken beer, yesterday vowed strong support for the Excise Department's amendment of laws to base excise taxes on retail prices instead of ex-factory prices.
Prin Malakul, legal and corporate-relations director, said this was the first time the department had asked companies involved in the alcoholic-beverage industry to share their ideas on drafting new excise-tax regulations.
“We were very gratified that the Excise Department actively sought input from a wide range of industry stakeholders during the process of drafting the new excise-tax code.
“This model of public-private-sector collaboration can help create effective and sustainable public policies that will serve as the basis for Thailand’s long-term prosperity,” he said.
The new tax code will be inherently fair to all stakeholders because the unique social and economic impacts of specific product types are explicitly factored into the way the law will be applied.
“At several points during the discussions regarding the new excise-tax law, the responsible government officials indicated that the objectives of the new law were more transparency and efficiency, rather than increased revenue.
“Thus the desired outcome of the application of the new law was a revenue-neutral position in which the government continues to collect approximately the same amount of excise tax, but through a clearer and more open system, which is widely considered to be a just result of the law,” Prin said.
About 20 representatives from companies including Diageo Moet Hennessy (Thailand), Siam Winery, Thai Beverage, Grand-Monte, Silverlake Vineyard, Bacardi, and Bangkok Beer & Beverage, as well as the Thai Wine Association, joined the latest meeting held at the Excise Department on August 25.
“I myself don’t think the new excise tax, which will be collected on alcoholic beverages based on their retail prices, will have a significant impact on the business itself or on consumers,” Prin said.
The Excise Department has shown its commitment to “neutral revenue”, so the degree of tax collection will not change.
“Under the new law, the products have been clearly divided into categories. The tax collection will also be ad valorem [based on value] and attribution in various aspects such as health, community and environment,” he said.
The Excise Department was concerned about creating a new tax system that would enhance the private sector’s capability to compete in the regional and international arenas, as well as the higher flow of trade within Asean, and to cash in on the Asean Economic Community, which will be effective next year.
“As an industry, we may not earn maximum benefits from the new regulations. The new tax system will be acceptable if it is based on transparency and fairness,” Prin said.
