From monopoly to fair play: Reforms in Thailand’s alcohol industry

During the 2023 general election, Pheu Thai and Move Forward engaged in a heated competition for votes among potential small-scale liquor producers. 

The Move Forward Party adopted the “progressive liquor law” campaign, promising to offer “freedom” to small alcohol producers, while Pheu Thai adopted the “community liquor’ slogan, aiming to help household producers sell their alcohol commercially 

This debate reached a turning point on Wednesday when the House of Representatives unanimously approved the Excise Tax Bill with 414 votes in favour. The approval aligns with the proposals made by Pheu Thai and its coalition partner United Thai Nation Party. 

Conversely, the “progressive liquor” bill proposed by the People’s Party (formerly Move Forward which was dissolved on August 7, 2024) failed to pass its first reading in September last year. Critics argued that its provision to exempt non-commercial alcohol production from licensing requirements could undermine production standards. 

In parliamentary debates, the People’s Party, as the opposition with limited seats, faced challenges in gaining traction. However, Taopiphop Limjittrakorn, a People’s Party MP for Bangkok, pushed for the need to dismantle monopolies held by large-scale alcohol producers. 

While the “progressive liquor” bill was rejected, the approved amendments to Article 153 of the Excise Tax Law marked a significant step forward. These changes ease restrictions, enabling individuals to obtain alcohol production licences and own distillation equipment. This move is expected to reduce the dominance of major producers and grant fairer access to small-scale producers, allowing them to create diverse alcohol products without undue limitations. 

Although the Pheu Thai Party and the government claim credit for this milestone, concerns remain about practical implementation. Unlocking licensing barriers is only part of the solution. To truly empower community alcohol production as a Thai soft power, longstanding issues – including advantages held by large corporations – must be addressed. 

One notable challenge lies in advertising restrictions. The Public Health Ministry’s ban on alcohol advertising has prompted major producers to promote water under identical brand names, maintaining visibility while adhering to regulations. 

Politically, Pheu Thai is presenting this as a government success. To sustain credibility, the party must ensure comprehensive and transparent reforms rather than half-hearted measures. 

Socially, the changes may face scrutiny, particularly during the Senate’s review. Observers will be watching closely to see whether the bill passes smoothly or encounters resistance in its final stages.