NESDC move targets fall in consumption

People enjoy the evening at an entertainment venue in Bangkok. Alcoholic beverage consumption increased in the first quarter and is having a negative effect on public health, so a new tax structure is needed, says Mr Danucha. Nutthawat Wichieanbut

The National Economic and Social Development Council (NESDC) has recommended restructuring the alcoholic beverage tax system to help reduce consumption.Speaking during a briefing on the country's social conditions in the first quarter of this year, Danucha Pichayanan, secretary-general of the NESDC, said consumption of alcoholic beverages and cigarettes increased during the quarter.

Alcoholic beverages, which have a negative effect on public health, should be reconsidered in terms of tax structure, he noted.

Thailand's alcohol tax system uses a two-tier structure that calculates both an ad valorem tax (a percentage of the retail price or value) and a fixed volumetric tax rate (often called a specific tax) based on the volume of pure alcohol. The higher of the two computed amounts is applied as the base excise duty.