A controversial tax exemption on imported wine in Thailand has led to a sharp rise in consumption among high-income earners, resulting in significant revenue losses for the government and raising concerns over broader social impacts.
According to a study by Assistant Professor Dr. Mana Laksamee-arunothai and Associate Professor Dr. Chidtawan Chanakul of Kasetsart University’s Faculty of Economics, the policy—introduced in early 2024—slashed customs duties from 54%–60% and reduced excise taxes on wine imports.
The researchers estimate that the move has cost the state nearly 600 million baht annually in lost revenue. At the same time, wine imports surged in value by over 10% compared to the previous year, with foreign wine producers being the main beneficiaries.
Notably, the study recorded a 300% spike in consumption of mid- to high-priced wines ranging from 3,001 to 5,000 baht per bottle. While lower-end wines priced under 1,000 baht experienced minimal price changes, premium wines became more than 10% cheaper, driving up demand among affluent consumers.
Beyond the fiscal losses, the policy’s social consequences are considerable. The study estimates that increased wine consumption has imposed a societal burden exceeding 10.3 billion baht annually. This figure accounts for negative outcomes such as traffic accidents, domestic violence, and detrimental effects on children and youth.
Criticism of the policy has also emerged in political circles. Senator Lae Dilokvidhyarat, speaking at a recent public forum, condemned the tax exemption on luxury goods like wine, stating that it contradicts fundamental economic principles. He warned that the measure not only deprives the country of vital revenue but also exacerbates public health and social issues
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