Drastic drop in the price of wine and other spirits in Thailand angers an NGO

An NGO has criticized the Thai government's decision to sharply cut taxes on wine and other alcoholic beverages.

See: Prices of wine and other alcohol to drop in Thailand to boost tourism

The NGO Stop-Drink Network Thailand believes the government is trying to solve one problem by creating another.

The association was responding to the government's decision on Tuesday, January 2, to reduce customs duties on wine imported for commercial purposes from 100% to 5% and remove the 10% tax on wine imported for non-commercial purposes.

The government also decided to exempt the 10% sales tax on traditional alcoholic beverages containing no more than 7% alcohol, while reducing the 10% excise tax on entertainment venues to 5%.

The government said the discounts were intended to provide a New Year's gift to the public and promote tourism.

Theera Watcharapranee, director of Stop-Drink Network Thailand, said the new tax breaks came as a shock to people struggling with alcohol consumption and its consequences.

Mr. Theera assures that instead of benefiting tourism and local alcoholic beverage manufacturers as claimed, this U-turn in the government's alcohol taxation policy will actually benefit companies that make profits by importing and selling expensive bottles of wine.

He said:

“Wine, which was once heavily taxed and considered a luxury product, has now become a common drink that everyone can afford.

Alcoholic beverages are addictive.

They can cause problems and harm the public health of the country.”

He added that the World Health Organization (WHO) has recommended increasing alcohol taxes as an effective way to reduce consumption rates, as it has been proven that every dollar spent on controlling alcohol consumption returns up to $8 in economic value.

Mr. Theera said such a recommendation made sense because the government would raise more revenue through higher tax rates, while the burden it places on the country's healthcare system would decrease due to the decline in the number of patients suffering from alcohol-related illnesses.

But what the government is currently doing is trying to get more revenue from tourism while ignoring the public health consequences of alcohol, he said.

No details were immediately available on the cost of health care for these patients, nor on the loss of productivity caused by an increase in road accidents.

Source: Bangkok Post