NEW EXCISE CHIEF VOWS WIDESPREAD TAX REFORM

       The new head of the Excise Department has pledged to reform liquor, beer, oil and automobile taxes in response to complaints by producers and independent academics of obscure rules and unfair treatment among rivals.
       Areepong Bhoochaoom, newly appointed director-general of the Excise Department, yesterday said he would give priority to solving issues related to tax collection on alcohol beverages, oil and cars. A committee has been set up to find solutions within two months, he said.
       Beer and liquor producers have long complained that the department has not treated them equally, accusing the department of favour one giant producer resulting in lack of a level playing field.
       Nipon Poapongsakorn, president of the Thailand Research Development Institution, an independent think-tank, also previously criticised the department and the Finance Ministry for their "unjust" excise tax system. Nipon currently leads a research team studying the whole structure of excise taxes.
       Some experts also suggested the tax rate should be based on alcohol content rather price.
       Areepong said the department might change the way its calculated car taxes from a rate based on factory prices to retail prices.
       The department may also require softdrink manufacturers and oil traders to provide online information in the same way that alcohol producers send online information about their production to the department.
       The department will make clear rules as to who must pay nightclub services tax, he pledged.
       It will also launch a tax reform master plan this year, Areepong said.
       The reform will aim to make taxes simple and justice and will not cause multinational firms to relocate their factories out of Thailand, he said.
       In the short run, the department will not increase tax rates, but will improve tax collection efficiency, he added.
       The agency plans to collect excise tax worth Bt291 billion for the current fiscal year (October 2009 to September 2010).
       Areepong wants to beat the target by Bt20 to Bt30 billion.
       The department is under pressure to collect more taxes as most tariffs under the Asean free trade agreement will be cut to zero next year.