Excise officials review new regime after complaints
THE Excise Department has begun reviewing its enforcement of a new tax regime on a range of products after local producers complained about unfair treatment since its introduction - especially on the collection of taxes on cigarettes.
Krisada Chinavicharana, director general of the Excise Department, yesterday said the department was carrying out the review to assess the workings of the new taxes three months after they came into effect.
The new excise structure, which went into force on September 16, uses suggested retail prices as the basis for tax calculation, which is said to be fair for both domestic producers and importers.
“We are looking at the suggested retail prices submitted by producers,” Krisada said. “If we find the prices are different from those of other producers of the same product, we would ask them to change their prices, as they have to pay tax properly.”
He said that as the excise overhaul was newly introduced, the public and private sectors needed to work together closely.
He said tax officials met representatives from the Federation of Thai Industries on Monday to their opinion on the new measures.
“Their complaints might lead to a regulatory change for better law enforcement,” Krisada said.
The Excise Department’s move for the review at the three-month mark follows a complaint by Thailand Tobacco Monopoly that a number of major foreign cigarette producers had taken advantage of the new system by exploiting a loophole in the regulations related to the tax law.
In response, foreign businesses based in Thailand – including those represented by the European Association for Business and Commerce (EABC) – urged tax officials to uphold the new law.
Separately, Krisada said the Excise Department will also step up its campaign against smugglers of alcoholic drinks and cigarettes during the long holiday of the Christmas-New Year season.
The recent tax hike may encourage more smuggling activities, he said. Tax officials will also go after those who sell alcoholic drinks at prohibited places, such as near schools or temples.
In October and November, the department seized 63,816 litres of illegal alcoholic drinks and imposed fines totalling Bt36.3 million on the offenders. The department also confiscated 6.5 million cigarettes over the period and dished out fines of Bt111.1 million.
The department revoked 321 licenses held by those vendors that had violated the excise law, Krisada said.
