Cabinet to consider liquor cost cuts, reduce airport duty-free shops
The Finance Ministry will on Tuesday propose to Cabinet new measures to suspend duty-free shops in the Arrivals section of all airports, as well as to reduce taxes on alcoholic beverages.
These measures are aimed at stimulating tourism and domestic spending, the ministry’s permanent secretary, Lavaron Sangsnit said on Monday.
“When we suspend arrivals duty-free shops, it will enable Thai and foreign tourists to spend domestically instead of spending at duty-free shops,” he said, adding that domestic shops will benefit from this measure.
He added that duty-free shop operator King Power is ready to accept the measure in a bid to stimulate tourism and economy.
Lavaron said a tax reduction on alcoholic beverages, including wine and community liquor, aims to ensure that tourists can access those beverages at a reasonable price.
“We must make tourists feel that coming to Thailand is like coming to a paradise, which covers eating, residing, travelling and playing,” he said.
Lavaron added that community-based tourism promotion is necessary to enable tourists to access domestic liquor.
A source from the Finance Ministry said these measures will be proposed for the Cabinet’s consideration on Tuesday to meet the influx of tourists during the New Year festival.
The changes are expected to come into effect on January 1 of the coming year, the source said, adding that they will be permanent measures.
Meanwhile, the Excise Department’s director-general, Ekniti Nitithanprapas said guidelines to reduce tax on wines and local liquor will help promote Thailand as the centre of shopping and tourism.
“Even though those measures could affect the department’s revenue, we believe that spending will be increased,” he said, adding that apart from excise tax reduction, the import tariff on wines would be reduced. That measure is currently being studied by the Fiscal Policy Office.
