PRESS RELEASE: EABC WELCOMES EXCISE TAX REFORM BILL, URGES NLA TO KEEP LAW IN LINE WITH INTERNATIONAL PRACTICE
Bangkok, 1 November 2016 – Mr. Rolf-Dieter Daniel, President of the European Association for Business and Commerce (EABC), together with the working groups, had a consultative meeting with the Excise Department presided by Ms. Wilai Tantinantana, Principal Advisor on Excise Control System Development. The meeting aimed to discuss the progress of the Draft Excise Tax Act which had recently passed the first reading of the National Legislative Assembly and share the private sector’s view on the challenges surrounding the bill.
EABC welcomed the opportunity to discuss our key concerns with the Royal Thai Government to ensure the objectives of the Excise Tax Reform can be achieved and Thailand maintains its investment attractiveness in ASEAN. A constructive dialogue and collaboration with the foreign business community is key to promote investor confidence in Thailand.
“EABC understands the Royal Thai Government’s intention for amending the Draft Excise Tax Act to promote transparency, efficiency and fair excise tax collection for all excisable goods. EABC welcomed the Excise Department’s move to reform Thailand’s excise taxation regime and resolve several issues especially the dispute on the current tax base. ” Mr. Daniel said.
At the meeting, EABC discussed the private sector’s concern on certain wordings in the bill. “In principle, the excise tax is levied on the consumption of the goods and services, either on the cost or on the suggested retail price (SRP). The SRP, by definition, is closest to consumption as it is the price set for end-consumers. Therefore, if the government wants to shift the tax base to the RSP, we do not see any reason why businesses’ manufacturing costs and other cost-related expenses need to be part of the tax calculation. This will only complicate the taxation process and increase administrative cost tremendously. Such is not in line with international practice.” Mr. Daniel explained.
The EABC President further concluded that “we hope the Royal Thai Government will stick to the concept of revenue neutrality that will not increase tax burden to businesses. We also urged the Excise Department to recognize the importance of ease of doing business. Thailand is already an attractive investment hub for the international business community. With this important reform bill sailing through the NLA, we hope to see a new law that will benefit Thailand in the long term and truly reforms the tax structure that promotes investors confidence and creates fairness for everyone.”
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About the organization:
EABC is established as a Consortium with sixteen Business Organizations and Chambers of Commerce in Thailand and Europe with a combined Membership of more than 2,000 companies in Thailand. With strong support from the European Union, EABC interact as the unified voice of European business aiming contributing towards the improvement of trade and investment climate in Thailand fostering business cooperation between Europe and Thailand.
For further information: Chaladbhum Temkasem (policy@eabc-thailand, Tel: +66 2670 0624 ext 104)
