Beer, booze, and smokes are about to get a bit pricier in Thailand. Yesterday, the cabinet approved a two percent increase on the “sin tax” applied to purchase of these vices.
The money will go to helping needy senior citizens and is part of the Elderly Fund approved at yesterday’s meeting, reported Bangkok Post.
More specifically, the increased tax money will be used to increase the governmental monthly allowances for the elderly since the current rates are far from sufficient.
Currently, all Thai citizens over 60 years old can receive THB600-THB1,000 per month. The amount increases you get older but is not tied to a recipient’s personal income. After the tax increase, those registered specifically as as low-income earners should see an increase to between THB900-THB1,300 each month. Those that don’t specify that they have low incomes will still receive the old amount.
The additional tax revenue will be funneled into a separate fund from the rest of the “sin tax” cash, which currently tallies THB213 billion annually. More specifically, the government is already collecting about THB65 billion each year from tobacco sales, THB62 billion from liquor sales, and THB86 billion from beer sales.
The “sin tax” is currently 5.5 percent on the taxable items and is partially used to support The Thai Health Promotion Foundation, which got THB4.3 billion last year; ThaiPBS, which gets THB2 billion annually; and the National Sports Development Fund, which also got THB4.3 billion last year.
The new increase will set the total “sin tax” at 7.5 percent and will go into effect in 2018 when the National Legislative Assembly enacts the legislation.
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