Concerns over alcohol hoarding before new excise rate

BANGKOK, Sept 15 (TNA) - Although the new excise law has not come into effect and the new tax rate on alcohol drinks is not officially announced, related agencies are now concerned over stockpiling these goods by traders to reap a windfall. The Commerce Ministry and the Finance Ministry will deploy officials to inspect shops and markets to prevent traders from hoarding alcoholic drinks, cigarettes for making profits when the new tax rate comes into effect on September 16. Anyone, who rejects to sell these products or stores them for price speculation will face a legal action under the Goods and Service Act, punishable by a maximum seven years in jail and/or a maximum fine of 140,000 baht. Meanwhile, Director of Thailand Tobacco Monopoly (TTM), Daonoi Suttiniphapunt,said the new excise tax rate prompted TTM to increase prices of all 16 cigarette brands but it will try to cap the suggested retail price ceiling at 60 baht for 20 per cent tax rate. She viewed that the increase of the excise tax may cause a drop in cigarette sales but it may cause smuggled cigarettes with tax avoidance to become prevalent and some smokers may turn to buy electronic cigarettes. If traders will stockpile cigarettes, they are likely to hoard imported ones. She also admitted that TTM may be affected by the new law and could suffer loss of seven billion baht in the 2017 budget year. (TNA)