As you venture into Southeast Asia, wine traders find even more complexity. Compared to Greater China, the region has stricter policies, though Thailand stands out as an exception. In a dramatic policy shift this year, Thailand eliminated its high import duties on wine, opening up a door for foreign wine traders who had previously struggled to compete.
Thailand, the largest wine market in ASEAN and a tourism destination with tourists and Westerners as the main consumers, has significantly decreased its wine taxes this year. According to Wine Australia, Thailand’s wine market is valued at A$ 1.76 billion (US$ 1.18 billion) in 2023. IWSR is optimistic about the future of Thailand wine market, forecasting a 3.1% annual growth rate of wine consumption volume and value until 2028. Around 97% of Thailand’s wine consumption is imported.
Effective March 1, 2024, Thailand implemented a new wine tax policy that eliminated the high import duties and unified the excise tax based on price. The policy is part of the Thai government’s campaign to promote Thailand as a center for tourism and shopping.
Under the old policy, there was a 54% import duty in Thailand, which has now been waived for one year. Although this change is temporary, it significantly reduces the hurdles for exporters entering the Thai market.
Previously, the price-based excise rate was 10% for wines priced over THB 1,000 (US$ 29.8), while wines priced under THB 1,000 were exempted. Currently, all wines are subject to a 5% excise tax. Additionally, there is another excise tax calculated based on the volume and alcohol content, which has decreased from THB 1,500 (US$ 45.9) per liter of alcohol to THB 1,000. On top of the total excise duty, Thailand also applies a standard 7% VAT and a 17.5% local tax on wine.
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