Tax hike proposal could threaten non-alcoholic beer in Thailand

According to the analysis and consulting company GlobalData, the tax increase planned for non-alcoholic beers in Thailand "may clip the wings" of the niche category before it even takes off. Alcohol-free beer brands have been introduced to the market in Thailand in recent years - such as Heineken 0.0, Hite Zero 0.0, Krombacher Weizen and Bavaria Original. However, according to London-based GlobalData, Thailand plans to raise taxes on beers with 0-0.5% alcohol content to "not attract new consumers". Alcoholic beers in the retail trade in Thailand are currently subject to an excise tax of 22%, while alcohol-free and low-alcohol products - similarly to non-alcoholic and soft drinks - are subject to only 14%. According to GlobalData, Thailand's Ministry of Public Health claims that because of the lower tax rate, non-alcoholic beers are technically cheaper than regular beers and can therefore be considered an alternative to other non-alcoholic drinks such as soft drinks. According to ...