Marketing/alcohol excise tax

Chatrudee Theparat

TAP disagreed the authority to raise tax for 0% alcohol drink
TAP disagreed if the government to raise new category of excise tax for 0% alcohol drinks higher than soft drink, but lower than beer.
Mr. Prin Malakul, deputy managing director of TAP Group, the distributor of non-alcoholic malt beverage called Heineken® 0.0 (Heineken® zero zero) said
TAP expects excise tax level of 0% alcohol drink to remain the same because
an increasing tax may motivate drinkers to shift from non-alcohol to consume cheaper alcohol drinks

Mr. Prin Malakul, deputy managing director of TAP Group

He disagrees to that idea that the Excise Department is considering raising tax or creating a new category for to 0% alcohol drinks which will be higher than soft drink, but lower than beer.

Each time tax is increased, even at the seemingly low percentage, it will significantly affect the retail price, due to a sophisticated calculation method. This could be viewed as an act of a tariff wall for drinkers who prefer alternative drinks to end up going for cheaper alcoholic drinks instead, despite the fact that it contains alcohol and may negatively affect their health and the society.

“The company will soon talk to the authority. What we ask for is simply an improvement in tax structure in accordance with that of developed countries, encouraging people to truly drink responsibly, without harming ones’ health and the society. We really want to see our country to bring about the reduction of total alcohol consumption sustainably, in compliance with the goal of the World Health Organization.” Said Mr Prin.

The company believes that the Excise Department should not raise the tax of 0% alcohol drinks, since a price increase could drive them towards alcoholic drinks which would be comparatively cheaper. In fact, such non-alcohol drinks or alternative drinks should receive support from the government since it offers an alternative to consumers of alcoholic beverages who want the same lifestyle while refraining from alcohol, which is definitely responsible to both their health and to the society.
“Looking into current social problems, many of them incurred under the influence of alcohol which caused domestic violence, quarrel and fights, crime and also accidents.” .

“However, the non-alcoholic malt beverage like Heineken®0.0 (Heineken® zero zero) is considered an alternative drink that people all over the world choose to consume in order to refrain from or reduce the amount of alcohol consumption. This is what we called a true ‘responsible drink.’ Moreover, it mitigates the risk of road accident and reduce factor that may affect one’s health due to alcohol intake.”

Heineken® 0.0 (Heineken® zero zero) is a non-alcoholic malt beverage, so excise tax rate falls under the same category as the soft drink which is 14%. Whist, beer with approximately5% alcohol is taxed at the excise rate of 22%. This is one of the methods used in hope that it will discourage alcoholic consumption.

“When it comes to a non-alcoholic drink, most of any other countries will not collect excise tax, or some will apply the same rate as soft drinks, since it’s an alternative for drinkers”.