EU wants Thailand to cut alcohol duty tax.

[Admin]

EU wants Thailand to cut alcohol duty tax 
Bangkok Post: 1 Sep 2010
EU request for duty cuts on drinks studied

Regulators will consider carefully and consult with all stakeholders a petition by the European Union for Thailand to slash import taxes on beverages, says Satit Rungkasiri, the director-general of the Fiscal Policy Office.

The EU wants Thailand to cut import tariffs on alcohol, now as high as 60%, particularly after the tariffs were cut to zero at the beginning of the year for Asean producers under the Asean Free Trade Area.

"In any case, we will want to consult with all stakeholders in considering the action, as well as the impact on society, government tax revenues as well as domestic producers," Mr Satit said yesterday.

Nearly 75% of all imported beverages come from the European Union. In value terms, imported alcohol from the EU accounts for 1.25% of the total value of all imports from Europe.

Taksapol Thammarangsi, the director for the Center for Alcohol Studies, said he disagreed with any move to include beverages in free trade discussions.

"Each year, 2.5 million people worldwide die because of alcohol. Compare this with the 8.5 million people who die from drug abuse," he said.

"I don't think we should negotiate alcohol tariffs or look to exchange tax cuts for [lower taxes on other Thai goods]. Alcoholic beverages are not an ordinary commodity."

Thanakorn Kuptajit, an executive with the beverage importer Diageo Moet Hennessy (Thailand) Ltd, said discussions about alcohol consumption should be based on scientific facts and statistics.

Mr Thanakorn, speaking as a representative of the Federation of Thai Industries, said alcohol consumption was ingrained in European culture, and that one should consider the quality of the beverages as well in any policy debate.

Reducing taxes on imported liquor was unlikely to result in a rise in the number of drinkers, he said, as imported drinks were consumed primarily by middle- and upper-income consumers.

http://www.bangkokpost.com/business/economics/193997/eu-request-for-duty-cuts-on-alcoholic-drinks-studied