Coca-Cola chairman argues for excise tax, price-control

       Coca-Cola company's chief has urged Thailand to cut or waive the excise tax on carbonated drinks, with a promise to invest more in Thailand and employ more Thai workers if the issue is reviewed.
       Muhtar Kent, chairman of US-based Coca-Cola, said while paying a visit to Prime Minister Abhisit Vejjajiva yesterday at Government House that a reform of excise taxes and pricing controls would pave the way for fair competition and benefit the Thai economy.
       Kiat Sitthiamorn, president of the Thailand Trade Representative Office, said after the meeting: "Kent said the pricing controls and the excise taxes are major investment obstacles. The pricing controls, which require the declaration of cost and sale prices to the Commerce Ministry, is now imposed in a few countries like Laos, Cambodia, Vietnam and Egypt.
       "Meanwhile, Thailand also imposes excise taxes only on carbonated drinks, not all types of beverages. This creates unfair competition. He also complains that Coca-Cola business in Thailand has failed to effectively grow despite annual investment of Bt1 billion throughout the 40-year period."
       Kiat noted that Kent did not demand an abrupt tax cut or waiver, but said the government's review would ensure fair practices and fairness to manufacturers and consumers and importantly, this will support Coca-Cola's further investment in Thailand. The trade representative said he would compile information about reducing investment obstacles for submission to the prime minister.
       During the meeting, Kent commended Thailand as one of the countries that survived the economic crisis well, with its stable financial sector and apparent improvement in economic figures.
       Kent visited Thailand as president of the US-Asean Business Council. Abhisit is scheduled to join the council's roundtable discussion on Sept 23 in New York, aiming to restore foreign confidence in Thailand.