The Excise Department has lowered excise taxes on wine and liquor, effective from February 23, to boost both tourism and spending.
Dr. Ekniti Nitithanprapas, the department's chief, states this move is intended to enhance the country's attractiveness to high-quality tourists and make prices more competitive regionally.
New tax rates include a flat 5% for all grape wines and sparkling wines, regardless of price, reduced from up to 10%. Moreover, the alcohol content tax for these has dropped from 1,500 baht to 1,000 baht per liter of 100% alcohol.
Fruit wines are now tax-free, while local fermented drinks like “U,” “Ka Chae,” and “Sato” have been slashed from a 10% value tax to zero, although their volume tax remains at 150 baht per liter of 100% alcohol.
For brewed liquors with over 7% alcohol, the value tax remains at 10%, but the volume tax has risen from 150 to 255 baht per liter of 100% alcohol.
Entertainment venues such as nightclubs and bars will enjoy a tax cut from 10% to 5% of revenue, a temporary measure effective until December 31, 2567 (Buddhist calendar year), as part of efforts to help these businesses recover post-COVID-19 and bolster domestic employment.