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Fri, May 18, 2007 : Last updated 20:39 pm (Thai local time)



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Home > Business > Swimming in a sea of sin taxes





STREET WISE
Swimming in a sea of sin taxes

Many producers at TITV have expressed concern that the government budget will be too small to finance the production of good programmes once the TV channel is barred from commercial advertising.

They shouldn't worry, judging from the increase in tobacco and alcohol sales.

While many smokers call it quits, new ones emerge to take their place, even though tobacco prices only move up, never down. As such, excise taxes on a "sin" product like cigarettes keep rising - the very taxes that fund TITV.

Meanwhile, don't worry that alcohol sales will drop.

Thailand's largest brewer Thai Beverage last week announced that its first-quarter net profit had risen 13 per cent due to higher beer sales.

Thai Beverage, which makes Chang Beer and Mekhong whisky, earned a net profit of Bt2.88 billion in the period, up from Bt2.54 billion a year earlier. Quarterly sales rose 11 per cent to Bt26 million.

More news confirming rising profits comes from Heineken, which achieved good beer volume growth across all regions in the first four months of the year.

The Dutch brewer said in a press release that in the first quarter, its consolidated beer sales had grown 11.1 per cent to 34.9 million hectolitres, even though beer consumption during the period is relatively low in the cold northern hemisphere.

Heineken did not provide sales figures for Thailand, but it said sales in Asia-Pacific - including Thailand, where the beer company sponsors many activities - had increased 26.5 per cent.

Cheers to all smokers and drinkers! Thanks to them, TITV producers are promised good returns for their programmes produced specifically for the TV channel.

With the unstoppable increase in consumption - and excise duties! - producers can rest assured that their pay is set to rise as well.

achara_d@nationgroup.com








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