The Thai Cabinet has recently approved the Finance Ministry’s amendment to ministerial regulations regarding the production of traditional liquor for non-commercial purposes and craft beer.
The 2017 Excise Tax Act controls domestic liquor production, but some investors see the existing regulations as too strict. The new ministerial regulations are more lenient while ensuring health and safety for drinkers, like preventing accidents caused by drinking liquor as well as protecting the environment.
Under the draft amendment, permits will be allowed for the production of 2 types of liquor namely fermented and community-distilled liquor. The amendment annuls all the requirements on registered capital and production capacities. Previously, investors who want to produce beer must have minimum registered capital of Bt 10 million (US$277,000) and a brewery that produces and sells its products on-site, requiring a minimum capacity of 100,000 litres per year and a maximum of 1 million litres per year.
Liquor production for non-commercial purposes is allowed for individuals aged 20 or older as well as companies, provided the production gains prior approval from the Excise Department. Production capacity cannot exceed 200 litres per year and products must comply with quality and environmental controls to ensure the safety of those who consume it.
For community liquor production that is now limited to a maximum of 5-horsepower machinery and no more than 7 workers, the new ministerial regulation will allow the use of a maximum 50hp machinery and up to 50 workers.
Finance Minister Arkhom Termpittayapaisith said the draft amendment will pave the way for easier production of traditional liquor and support small community producers becoming mid-sized distillers. This should support the economy indirectly and create more employment.
