Excise Department supports Move Forward Party’s Progressive Liquor Act

The deputy director-general of the Excise Department stated that the department’s liquor policy is in line with the Move Forward Party‘s Progressive Liquor Act. The proposed Act aims to liberalise liquor production, allowing both small and large producers to enter the market.

Kriengkrai Pattanaporn explained that the proposal is consistent with the department’s policy, and there would be no objections if the party forms a government and passes the law. Previously, liquor producers were categorised as either community producers or large producers. However, an amendment to ministerial regulations for liquor and beer production approved in November 2022 allows small enterprises to upgrade to medium-sized producers.

In Thailand, small manufacturers have a production rate of 5 horsepower (hp) or less, while medium-sized producers have a rate of 5-50hp, and large manufacturers exceed 50hp. There are thousands of small, community-based producers in the country. Since the amendment, only one small producer has applied for a licence to upgrade to a medium-sized manufacturer.

Kriengkrai noted that there are no restrictions on applying for a licence to become a large producer. However, new entrants are less likely due to the high market value of 400 billion baht per year, requiring a significant investment for market entry. Additionally, there are restrictions on alcohol advertising to limit the influence of liquor manufacturers.

More players entering the market are expected to generate increased revenue for the department. As for beer production, only large breweries and brewpubs currently exist. One obstacle is an amended rule requiring brewers and distillers to conduct an environmental impact assessment, as mandated by the Department of Industrial Works, reported Bangkok Post.

Kriengkrai also mentioned that tax collection for alcoholic beverages has improved during the first seven months of fiscal 2023, following the country’s full reopening. The department collected 40.3 billion baht from liquor drinks, a 10% increase from the previous year, and 54 billion baht from beer sales, up 3% from the previous year.