Diageo Moet Hennessy backs overhaul of drinks taxes

The tax scheme under the new Excise Tax Act B.E. 2560, places emphasis on categorising commodities that are subject to excise, and on reducing unequal treatment and discrimination in business. 
The base for ad varolem tax calculation has shifted from the last wholesale price (LWP) to the suggested retail price (SRP), or the market price that consumers pay for products.
The excise tax rate structure remains dual, but moves from a price-focused to an alcohol degree-focused tax system, which will encourage the development of quality alcoholic beverages and control high-degree alcoholic products that affect public health. 
Liquor selling licences have been simplified, from seven categories to two - wholesale and retail sales - to reduce complications and overlap. Ceiling rates for liquor selling licences, product licences and import licences have increased by 10 to 25 times. 
Heavier penalties on production and smuggling of illegal alcoholic beverages and moonshine will be enforced to address the problems of smuggled goods. All imported alcoholic beverages sold in the kingdom must come with evidence of sole selling rights from original producers overseas or trademark holders.
The new law, which will come into force on September 16, aims to increase the efficiency of the taxation system, promote fair and equal business conduct, avoid the tax burden that might be imposed upon businesses and consumers, as well as to reduce the harmful use of alcohol. The excise tax reform, spearheaded by the government through the Excise Department, has allowed participation by the private sector, the company’s corporate relations director Thanakorn Kuptajit said yesterday.