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.
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 1,500 baht per liter to 1,000 baht per liter. 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 these 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 2.9 billion baht, with an average spending per person increased to 43,400 baht.
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. This lowered rate will remain applicable until 31 December 2024. (NNT)
