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Wed, June 13, 2007 : Last updated 19:48 pm (Thai local time)



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Home > Business > Consumption of alcohol, cigarettes still on the rise





Consumption of alcohol, cigarettes still on the rise

Alcohol and cigarette consumption is still rising even though the government has stepped up its campaign against harmful products, the Excise Department said yesterday, commenting on higher-than-expected revenues in these areas.

The department also plans to restructure its taxes, which might result in higher rates for alcoholic beverages and air-conditioners, said director-general Wisudhi Srisuphan.

In the first eight months of the fiscal year to May, cigarette duties were up 25.86 per cent year on year to Bt36.17 billion, which was 20.93 per cent over budget, he said.

Beer duties jumped 29.01 per cent to Bt36.29 billion, while liquor duties climbed 18 per cent to Bt24.24 billion.

Wisudhi said the level of alcohol consumption still might not satisfy the expectations of many social activists, but at least the rate of consumption of beer, liquor and cigarettes has been slowing.

The department is studying how to increase taxes on some products in order to curb alcohol consumption. An unrealistically high rate could promote underground or bootlegged products.

Over the past eight months, the department has taken legal action against the counterfeit trade and other illegal activities, scoring fines of Bt154.26 million from 22,249 cases.

It is also looking at luxury items such as air-conditioners for possible tax hikes.

Excise collected to May totalled Bt196.91 billion, 4.27 per cent higher than targeted. Collections in May alone were Bt23.37 billion, missing the budget by Bt864.73 million.

Auto duties were hard hit by the economic slowdown, down by 13.06 per cent year on year and 12.52 per cent lower than targeted. Oil duties were Bt51.59 billion, up 12.56 per cent year on year and 1.95 per cent over budget.

Wichit Chaitrong

The Nation







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