The mysterious tax rise takes effect tomorrow, and drinkers and smokers living in Thailand are getting prepared. They are buying up alcohol and smokes as fast as they can in case the tax, the rate for which has still not been officially announced, is prohibitively high.
Wholesalers and distributors across Bangkok have told Thai PBS that they can’t keep up with the demand and are already out of stock on many items. Stores have even had to turn down orders over the last few days as stock ran low when people got scared of looming higher prices.
Customers across the city complained that alcohol and smokes were already unavailable at many places and that shops were jacking up their prices even ahead of the official tax increase. This is due, in part, to people stocking up, but also to traders buying stock they hope to sell at inflated prices (but still cheaper than government prices) over the coming days.
Grocery stores also admitted to buying more stock than usual ahead of the new tax.
Grocer Sompong Chaisaensuk said that he feared the higher tax will simply result in more counterfeit and dangerous smuggled drinks and cigarettes.
Hoarding to resell at inflated prices is illegal in Thailand under the Goods and Services Act. The crime can be punishable by up to seven years in prison and/or a fine of up to THB140,000.
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