Thailand implements tax cuts on alcohol to revive tourism

The Thai cabinet has greenlit tax reductions on alcoholic beverages and entertainment establishments in a bid to rejuvenate the country's tourism sector, as announced by a government spokesperson on Tuesday. Specifically, the tax on wine will be slashed from 10 per cent to 5 per cent, while spirits will no longer carry any excise tax, down from the previous 10 per cent. Additionally, levies on entertainment venues will undergo a reduction, plummeting from 10 per cent to 5 per cent. These fiscal measures are set to conclude at the end of the current year.

Further enhancing the nightlife experience for tourists and locals alike, Thailand had previously extended operating hours for entertainment venues, now allowing them to remain open until 4 am. 

According to official reports, Thailand’s tourism revenue directly contributes 12 trillion baht to the GDP. Before the COVID-19 pandemic, Thailand was the eighth most visited country in the world as per World Tourism rankings compiled by the United Nations World Tourism Organisation.

Notably, Thailand successfully met its target of accommodating 28 million tourists in 2023, as indicated by government statistics.

(With Reuters inputs)