BANGKOK, March 24 (TNA) - More than 50 Thai tea and coffee growers on Tuesday submitted a letter to Prime Minister Abhisit Vejjajiva opposing his government’s plan to increase excise taxes on both commodities aimed at increasing state revenue by Bt30 billion annually.
Accompanied by Horticultural Science Society of Thailand president Ananta Dalodom, the protesting growers said that higher excise taxes on tea and coffee will automatically push up production costs of the private sector which would in turn depress buying prices from the planters.
30,000 families grow about 40,000 rai of coffee yielding 10,000 tonnes annually, while another 50,000 families grow tea on some 200,000 rai, Mr. Ananta said.
Thailand Coffee and Tea Association president Thirawat Wongworathat said the Finance Ministry should change its attitude that both tea and coffee are detrimental to human health as both are popular beverages worldwide.
The Thai government and a number of organisations in the North have encouraged local residents to grow tea and coffee instead of opium, said Mr. Thirawat. After such encouragement, the ministry should reconsider the plan to hike excise tax.
Deputy Finance Minister Pruttichai Damrongrat explained that the government planned to collect higher excise taxes on instant, canned tea and coffee with high caffeine content and they comprise only 10 per cent of total market value.
Thailand earlier imposed an excise tax on pep tonics and canned soft drinks, Mr. Pruttichai said.
The Cabinet is considering whether to raise excise taxes on the two beverages as the government is under pressure to find more revenue at this time of economic slump in the country, he said.
Deputy Finance Minister Pradit Phataraprasit said the government’s economic agencies will within days discuss ways to collect more taxes due to shortfalls in tax collection leaving revenues much lower than earlier projected.
The government must borrow funds to jump start the economy if its revenue is insufficient, Mr. Pradit added. (TNA)
Business News : Last Update : 15:58:47 24 March 2009 (GMT+7:00)
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