, Thailand
466 views
Source: Iryna Olar (Pexels)

Proposed tax hikes could hurt no-alcohol beer in Thailand

A tax hike on no-alcohol beer is being considered to discourage attracting novice drinkers.

A proposed tax increase on no-alcohol beer in Thailand could hurt the industry, GlobalData reported.

The report noted that a tax hike could disrupt the industry’s recovery from the 16.3% volume decline it registered due to the pandemic. 

“Several no-alcohol beer brands, such as Heineken 0.0, Hite Zero 0.0, Krombacher Weizen, and Bavaria Original have been introduced in Thailand in recent years. These products are positioned as better-for-you options with negligible alcohol content and a lower calorie count compared to regular beers,” Bobby Verghese, Consumer Analyst at GlobalData, said.

“These brands target drinkers who are moderating their alcohol consumption or abstaining from it due to health concerns or lifestyle changes. Their marketing campaigns are thereby directed at young adults who have entered the legal drinking age, women, working-class urbanites, and active parents. ”

Read more: Retailers could bear the brunt of Malaysia’s proposed luxury tax

Presently, an excise tax of 22% is levied on the retail sales price of alcoholic beer, whilst low-/no-alcohol beers are subject to a 14% excise tax, on par with non-alcoholic beverages, such as carbonates.

In 2019, the Royal Thai Excise Department proposed to increase the tax on no-alcohol beers to prevent encouraging novice drinkers. This was however postponed due to the pandemic. 

“The Thai Public Health Ministry rationalized that due to the lower tax rate, no-alcohol beers were cheaper than regular beers, and thereby are being perceived as alternatives to non-alcoholic refreshments,” Tim Hill, Key Account Director at GlobalData Singapore, said. 

“The Excise Department thereby proposes to elevate the tariff on no-alcohol beers to a midway point between that of carbonates and regular beer.”

 

Follow the link for more news on

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

India’s e-commerce market to reach $147.3b in 2024
It will be driven by the expanding internet penetration and better digital payment infrastructure.
E-commerce
Food colors market to reach $5.42b by 2031
Still, the market growth is constrained by strict regulations.

Exclusives

Brands told to come clean about beauty care
Consumers are more discerning and can easily spot fake ingredient claims.
Swarovski cracks TikTok to scale luxury amongst Gen Zs
The Austrian glassmaker is working with influencers to connect with the Singaporean market.
Starbucks Korea opens high-tech store in Seoul
Its first reserve-only branch features AR art installations and a Mixology Bar.
Decathlon gets closer to hybrid Singaporean shoppers through pick-up service
The world’s largest sporting goods retailer lets clients pick up online orders on the go.Decathlon is building on the success of its pick-up service in Singapore as it progresses toward its target of having 37 locations in the city-state in the next two years, its top official said.