Income tax cuts for individuals and businesses, ambitious public expenditure, financial assistance for people affected by the tsunami in December 2004, the increase in spending on the national health system and public pressure to curb alcohol consumption all contributed to the decision by the Government of Thailand to consider raising its excise taxes on alcoholic beverages. By September 2005, the Thai Cabinet decision was taken on the reform of the system of taxation of alcoholic beverages. Currently, the scheme was a mixed system, which is charged on the basis of the excise tax as liquor value and number of alcohol in the matter gave higher incomes. Cabinet caught between the competing interests of their own needs: income, profit objective of local manufacturers, and consumer preferences and wellbeing examines three options for reform proposed by the Ministry of Finance Tax Excise Department. The case examines the key factors that affect the terms and desires of each of the stakeholders, and provides an international comparative analysis on taxation of alcoholic beverages. Case can be used in both public policy and business courses, as it demonstrates the dynamic interaction between government policy, corporate strategy and the interests of consumers. HKS Case Number 1857.0 "Hide
by Aswin Techajareonvikul, Jay K. Rosengard 25 pages. Publication Date: February 27, 2007. Prod. #: HKS238-PDF-ENG
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