Cabinet approves measures to attract tourists, reducing taxes on wine, local spirits and entertainment business . Mr. Chai Watcharong, spokesman for the Prime Minister's Office, revealed that the Cabinet meeting The resolution was approved and acknowledged. According to the Ministry of Finance Proposes a set of 2 measures to promote Thailand as a center for tourism and spending, including: Measure 1 Improving the excise tax structure for certain types of beverages and liquor products. and a temporary reduction in excise tax rates for entertainment or recreational activities. and exemption of import duties on wine products To incentivize the price for tourists to spend on food and beverage products. and increased leisure travel within the country The details are summarized as follows. (1) Wine spirits and sparkling wine made from grapes (Wine) abolish the collection of taxes based on price tiers (Price Tier) and set the collection to be at a single rate (Unitary Rate). By adjusting the tax rate to have an ad valorem tax rate of 5 percent and a volume tax rate of 1,000 baht per liter of pure alcohol. (2) Fruit liquor containing grapes or grape wine (Fruit Wine) abolishes the collection of taxes from price tiers (Price Tier) and sets the collection to be at a single rate (Unitary Rate) by adjusting The tax rate shall be an ad valorem tax rate of 0 percent and a volume tax rate of 900 baht per liter of pure alcohol. (3) Other types of soaked liquors Previously, the tax was collected at an ad valorem rate of 10 percent and a volume rate of 150 baht per liter of pure alcohol. Set tax rates by dividing the tax rates into sub-categories as follows: 3.1) U, Krachae, wort, other local steeped liquors and soaked spirits using rice raw materials with an alcohol strength not exceeding 7 degrees, with an ad valorem tax rate of 0 percent and a volume rate of 150 baht per liter of pure alcohol. 3.2) Soaked spirits that are mixed with distilled spirits and have an alcohol strength of more than 7 degrees, with an ad valore m tax rate of 10 percent and a volume tax rate of 255 baht per liter of pure alcohol. - Immersed liquor other than 3.1 and 3.2, with an ad valorem tax rate of 10 percent and a volume tax rate of 150 baht per liter of pure alcohol. (4) Soaked liquor that is not for commercial use. The tax structure and rates have been adjusted to be consistent with this adjustment of the tax structure and tax rates. The ad valorem tax rate is set at 0 percent and the volume tax rate is equal to the tax rate for soaked liquor products. For the processing period from the day following the announcement in the Royal Gazette onwards. In addition, there has been an improvement in the excise tax structure for entertainment or leisure businesses. which method of operation The Excise Department has drafted ministerial regulations. To improve the excise tax structure, part 17, entertainment or leisure businesses By reducing the ad valorem tax rate from 10 percent to 5 percent for entertainment or leisure businesses, category 17.01, i ncluding nightclubs, discotheques, pubs, bars, cocktail lounges. This shall include places that sell food and alcoholic beverages. By arranging musical performances or any other performances for entertainment. It closes after 12:00 AM in order to stimulate the economy in the tourism and service sectors. In line with the government's policy to support the tourism sector. which the processing time From the day after the announcement in the Royal Gazette until 31 Dec. 2024 (from 1 Jan. 2025, the original ad valorem tax rate will be 10 percent). In addition, the customs tax structure for wine products has been improved. The Excise Department has drafted an announcement from the Ministry of Finance on the reduction of duty rates and exemption of customs duties according to Section 12 of the Customs Tariff Act B.E. 2530 (No.…) in order to improve the customs tax structure of wine products to be in line with the Improving the excise tax structure By specifying that customs duties will be exempted from all types of wine products according to tariff category 22.04 (wine made from fresh grapes and grape must) and 22.05 (vermouth and other wines made from fresh grapes flavored with plants or aromatic substances), a total of 21 subcategories, and the duty rate will be reduced from 60 percent to exempt from duty. To come into effect together with the draft ministerial regulations. For the second measure, improving the criteria for inspecting products for VAT Refund for Tourists to reduce the number of tourists who have to queue to present products in the VAT refund process. The Revenue Department has issued an announcement from the Director-General of the Revenue Department regarding Value Added Tax (Cho. 254) regarding the determination of criteria, methods, and conditions for those traveling outside the Kingdom who purchase goods from registered operators to take outside the Kingdom. You can request a refund of Value Added Tax that has already been collected according to Section 84/4 of the Revenue Code, dated 27 Nov. 202 3 and effective since 1 Dec. 2023, which can be summarized as follows. Increase the limit for purchases of goods that must be presented to customs officials. From the original price of 5,000 baht or more to 20,000 baht or more, which will reduce the number of tourists who must exhibit products from 120,000 per year to approximately 30,000 per year, or a decrease of approximately 75 percent. Increased the value of products that must be presented to revenue officers to 9 items (Luxury Goods), including jewelry, gold jewelry, watches, glasses, pens, smartphones, laptops or tablets, bags (excluding travel bags), belts, from the original value. Pieces from 10,000 baht or more to 40,000 baht or more, and increasing the value of items that can be carried on board (carry-on) from the original value per piece from 50,000 baht or more to 100,000 baht or more. A spokesman for the Prime Minister's Office also said that in general, the said measures proposed by the Ministry of Finance This will result in a net increase in excise and customs tax revenue collection of approximately 401 million baht per year and GDP growth of 100%. 0.0073.-316 Source: Thai News Agency
Sunday, September 08, 2024