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The Star
26-05-2025
- Business
- The Star
Thai wine tax cut backfires: Consumption soars, state loses millions
BANGKOK: A controversial tax exemption on imported wine in Thailand has led to a significant increase in consumption, particularly among high-income earners, while costing the government millions in lost revenue and imposing substantial social burdens. A study conducted by Assistant Professor Mana Laksamee-arunothai and Associate Professor Chidtawan Chanakul from Kasetsart University's Faculty of Economics reveals that the policy, implemented in early 2024, reduced customs duties from 54 to 60 per cent and lowered excise tax. This has resulted in an estimated annual revenue loss to the state of almost 600 million baht (US$18 million). The research found a dramatic 300 per cent increase in consumption of wines priced between 3,001 baht and 5,000 baht within a single year. Overall, the value of wine imports jumped by over 10 per cent compared with the previous year, with direct benefits primarily accruing to foreign wine producers. While cheaper wines (under 1,000 baht) saw negligible price drops, high-end wines became over 10 per cent cheaper, boosting demand among affluent consumers. However, the policy's social and economic costs are substantial. The study estimates the total cost stemming from increased wine consumption, including risks from accidents, domestic violence, and impacts on children and youth, at over 10.3 billion baht. Senator Lae Dilokvidhyarat, speaking at a recent public forum, criticised the government's decision to exempt taxes on luxury goods like wine. He argued that it contradicts basic economic principles, leading to both lost revenue and negative public health and social consequences. Dr Chidtawan further highlighted that alcohol consumption is a classic 'externality', imposing unintended costs on society. Governments typically use taxes and regulations to limit consumption. She expressed concern that Thailand's government is also considering more liberal alcohol advertising, despite the country's high per capita consumption of 8 litres per year (exceeding Singapore, Japan, and Norway), and an average of 2,400 annual deaths from drink driving. - The Nation/ANN
Straits Times
26-05-2025
- Business
- Straits Times
Thai wine tax cut backfires: Consumption soars, state loses millions
The estimated annual revenue loss to the state is almost 600 million baht (S$23.6 million). PHOTO ILLUSTRATION: PIXABAY A controversial tax exemption on imported wine in Thailand has led to a significant increase in consumption, particularly among high-income earners, while costing the government millions in lost revenue and imposing substantial social burdens. A study conducted by Assistant Professor Mana Laksamee-arunothai and Associate Professor Chidtawan Chanakul from Kasetsart University's Faculty of Economics reveals that the policy, implemented in early 2024, reduced customs duties from 54 to 60 per cent and lowered excise tax. This has resulted in an estimated annual revenue loss to the state of almost 600 million baht (S$23.6 million). The research found a dramatic 300 per cent increase in consumption of wines priced between 3,001 baht and 5,000 baht within a single year. Overall, the value of wine imports jumped by over 10 per cent compared with the previous year, with direct benefits primarily accruing to foreign wine producers. While cheaper wines (under 1,000 baht) saw negligible price drops, high-end wines became over 10 per cent cheaper, boosting demand among affluent consumers. However, the policy's social and economic costs are substantial. The study estimates the total cost stemming from increased wine consumption, including risks from accidents, domestic violence, and impacts on children and youth, at over 10.3 billion baht. Senator Lae Dilokvidhyarat, speaking at a recent public forum, criticised the government's decision to exempt taxes on luxury goods like wine. He argued that it contradicts basic economic principles, leading to both lost revenue and negative public health and social consequences. Dr Chidtawan further highlighted that alcohol consumption is a classic 'externality', imposing unintended costs on society. Governments typically use taxes and regulations to limit consumption. She expressed concern that Thailand's government is also considering more liberal alcohol advertising, despite the country's high per capita consumption of 8 litres per year (exceeding Singapore, Japan, and Norway), and an average of 2,400 annual deaths from drink driving. THE NATION/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
10-03-2025
- Business
- Yahoo
Mexicans celebrate with President Sheinbaum after US tariff delay
Tens of thousands of people packed into Mexico's City main plaza on Sunday to celebrate with President Claudia Sheinbaum a decision by the US to postpone tariffs on many of the country's goods. The crowd clutched large Mexican flags and yelled, 'Mexico is to be respected!' as they cheered on Sheinbaum. 'Fortunately, dialogue and respect have prevailed,' she told the crowd. The celebration comes just days after US President Donald Trump postponed 25% tariffs on many imports from Mexico for a month, saying Sheinbaum had made progress on drug smuggling and illegal immigration. Sheinbaum had planned to announce retaliatory measures on Sunday, but instead held a mass celebration. While threats persist, the president said she was optimistic tariffs would not be applied to Mexico and that she would continue to act with a 'cool head' in the face of Trump. Among Sheinbaum's supporters was Roberto González, a 68-year-old computer scientist who raised a sign that read 'we are united Mexicans". 'The unity of the country is very important,' González said, adding that is the only way Mexico would be able to 'face one of the largest powers in the world". Also cheering on the president was Mariana Rivera, a 40-year-old social activist who held up a massive Mexican flag as high as her arms allowed. Despite the lingering threats facing the country, the activist said she was convinced that 'the president will overcome everything'. Related Mexico will react to Trump tariffs on Sunday, President Sheinbaum says Trump temporarily suspends tariffs on Mexico and Canada's carmakers Analysts say they don't expect the jubilant ceremony to alleviate the climate of uncertainty that threatens new investments and the Mexican economy. They nonetheless note that it will help Sheinbaum consolidate internal support against Trump, who is setting the pace of bilateral relations. 'This is an event designed more for internal politics,' said political scientist Javier Rosiles Salas, stating that Sheinbaum will seek to use Sunday's event to strengthen her image. Rosiles Salas told AP that despite concerns in Mexico about the economic impacts of a tariff war with the United States, the confrontation with Trump has been 'very profitable for Claudia Sheinbaum' and has allowed her to achieve popular support of over 60% five months into her term. The US is Mexico's main trading partner and destination of more than 80% of Mexican exports. Although the 62-year-old president appears strong now, it is not clear whether her political support would weaken if the Mexican economy deteriorates because of tensions with the US. For now, the projections of specialists and rating agencies are not favorable. Most analysts agree that if general tariffs are imposed, Mexico could face a GDP contraction of more than 1%. A prolonged climate of uncertainty doesn't favour Mexico, according to Samuel Ortiz Velásquez, professor of the Faculty of Economics at the National Autonomous University of Mexico. After phone conversations with counterparts in Mexico and Canada, Trump decided last Thursday to pause until 2 April the general tariffs for products that are under a trilateral trade agreement. In early February, Trump also suspended tariffs after Sheinbaum promised to send 10,000 national guards to the northern border to contain drug trafficking. Despite the agreements, Trump's decision on the 25% tariffs on steel and aluminum from Mexico and Canada, which are scheduled to come into effect on 12 March, remains in limbo.
The Hill
09-03-2025
- Business
- The Hill
Tens of thousands of Mexicans rally with president to celebrate US decision to delay tariffs
MEXICO CITY (AP) — Tens of thousands of people packed into Mexico's City main plaza on Sunday to celebrate with President Claudia Sheinbaum a decision by the U.S. to postpone tariffs on many of the country's goods. The crowd clutched large Mexican flags and yelled, 'Mexico is to be respected!' as they cheered on Sheinbaum. 'Fortunately, dialogue and respect have prevailed,' she told the crowd. The celebration comes just days after U.S. President Donald Trump postponed 25% tariffs on many imports from Mexico for a month, saying Sheinbaum had made progress on drug smuggling and illegal immigration. Sheinbaum had planned to announce any retaliatory measures on Sunday, but instead held a mass celebration. While threats persist, the president said she was optimistic tariffs would not be applied to Mexico and that she would continue to act with a 'cool head' in the face of Trump. Among Sheinbaum's supporters was Roberto González, a 68-year-old computer scientist who raised a sign that read 'we are united Mexicans.' 'The unity of the country is very important,' said González, adding that is the only way Mexico would be able to 'face one of the largest powers in the world.' Also cheering on the president was Mariana Rivera, a 40-year-old social activist who held up a massive Mexican flag as high as her arms allowed. Despite the dark clouds hanging over the country, the activist said she was convinced that 'the president will overcome everything.' Analysts say they don't expect the jubilant ceremony to alleviate the climate of uncertainty that threatens new investments and the Mexican economy, but that it would help Sheinbaum consolidate internal support against Trump, who is setting the pace of bilateral relations with his powerful rhetoric. 'This is an event designed more for internal politics,' said political scientist and academic Javier Rosiles Salas, stating that Sheinbaum will seek to strengthen her image and leadership with Sunday's event. Rosiles Salas told The Associated Press that despite concerns in Mexico about the economic impacts that a tariff war with the United States — its main trading partner and destination of more than 80% of Mexican exports — could unleash, the confrontation with Trump has been 'very profitable for Claudia Sheinbaum' and has allowed her to achieve popular support of over 60% five months into her term. Although the 62-year-old president appears strong now, it is not clear whether her political support would weaken if the Mexican economy deteriorates because of tensions with the U.S. For now, the projections of specialists and rating agencies are not favorable. Most analysts agree that if general tariffs are imposed, Mexico could face a contraction of more than 1% of the Gross Domestic Product. A prolonged climate of uncertainty doesn't favor Mexico, according to Samuel Ortiz Velásquez, professor of the Faculty of Economics at the National Autonomous University of Mexico. After phone conversations with his counterparts in Mexico and Canada, Trump decided last Thursday to pause until April 2 the general tariffs for products that are under a trilateral trade agreement. In early February, Trump also suspended tariffs after Sheinbaum promised to send 10,000 national guards to the northern border to contain drug trafficking. Despite the agreements, Trump's decision on the 25% tariffs on steel and aluminum from Mexico and Canada, which are scheduled to come into effect on March 12, remains in limbo.
Yahoo
09-03-2025
- Business
- Yahoo
Tens of thousands of Mexicans rally with president to celebrate US decision to delay tariffs
MEXICO CITY (AP) — Tens of thousands of people packed into Mexico's City main plaza on Sunday to celebrate with President Claudia Sheinbaum a decision by the U.S. to postpone tariffs on many of the country's goods. The crowd clutched large Mexican flags and yelled, 'Mexico is to be respected!' as they cheered on Sheinbaum. 'Fortunately, dialogue and respect have prevailed,' she told the crowd. The celebration comes just days after U.S. President Donald Trump postponed 25% tariffs on many imports from Mexico for a month, saying Sheinbaum had made progress on drug smuggling and illegal immigration. Sheinbaum had planned to announce any retaliatory measures on Sunday, but instead held a mass celebration. While threats persist, the president said she was optimistic tariffs would not be applied to Mexico and that she would continue to act with a 'cool head' in the face of Trump. Among Sheinbaum's supporters was Roberto González, a 68-year-old computer scientist who raised a sign that read 'we are united Mexicans." 'The unity of the country is very important,' said González, adding that is the only way Mexico would be able to 'face one of the largest powers in the world." Also cheering on the president was Mariana Rivera, a 40-year-old social activist who held up a massive Mexican flag as high as her arms allowed. Despite the dark clouds hanging over the country, the activist said she was convinced that 'the president will overcome everything.' Analysts say they don't expect the jubilant ceremony to alleviate the climate of uncertainty that threatens new investments and the Mexican economy, but that it would help Sheinbaum consolidate internal support against Trump, who is setting the pace of bilateral relations with his powerful rhetoric. 'This is an event designed more for internal politics,' said political scientist and academic Javier Rosiles Salas, stating that Sheinbaum will seek to strengthen her image and leadership with Sunday's event. Rosiles Salas told The Associated Press that despite concerns in Mexico about the economic impacts that a tariff war with the United States — its main trading partner and destination of more than 80% of Mexican exports — could unleash, the confrontation with Trump has been 'very profitable for Claudia Sheinbaum' and has allowed her to achieve popular support of over 60% five months into her term. Although the 62-year-old president appears strong now, it is not clear whether her political support would weaken if the Mexican economy deteriorates because of tensions with the U.S. For now, the projections of specialists and rating agencies are not favorable. Most analysts agree that if general tariffs are imposed, Mexico could face a contraction of more than 1% of the Gross Domestic Product. A prolonged climate of uncertainty doesn't favor Mexico, according to Samuel Ortiz Velásquez, professor of the Faculty of Economics at the National Autonomous University of Mexico. After phone conversations with his counterparts in Mexico and Canada, Trump decided last Thursday to pause until April 2 the general tariffs for products that are under a trilateral trade agreement. In early February, Trump also suspended tariffs after Sheinbaum promised to send 10,000 national guards to the northern border to contain drug trafficking. Despite the agreements, Trump's decision on the 25% tariffs on steel and aluminum from Mexico and Canada, which are scheduled to come into effect on March 12, remains in limbo. Fabiola Sánchez, The Associated Press Sign in to access your portfolio
