The paper compares the tax treatment of alcohol products in the ASEAN countries.
Alcohol products in the ASEAN countries are generally classified into fermented liquors, distilled spirits, and wines.
Among the ASEAN countries, Laos, Cambodia, Myanmar, and Vietnam impose an ad valorem tax on alcohol products. Indonesia imposes a percentage tax but terms it as a luxury sales tax.
The ad valorem tax rates, specifically for beer in these countries range from 30% to 75% based on the cost of sale or selling price for domestically produced products, and customs duty plus CIF value or landed cost for imported goods. For other alcoholic beverages, the tax range is from 10% to 200% of the selling price.
On the other hand, Brunei, Singapore and the Philippines impose a specific tax on their alcohol products with Singapore having the highest tax rates on beer and distilled spirits that range from $48.00/liter to $70.00/liter followed by Brunei with an excise tax that ranges from $30.00/dal to $120.00/dal compared to the Philippines’ multi-tiered rates on these products.
Brunei’s excise tax base for beer, wines and fermented beverages is generally on a per deciliter (dal) basis, and for distilled spirits and other alcohol products, on a per proof deciliter (p.p. dal) basis, while Singapore is generally on a per liter basis. On the other hand, the Philippines is on a per proof liter with consideration of the volume capacity, particularly for distilled spirits. In the case of wines, the tax is based on the net retail price per bottle, regardless of proof; and for fermented liquors, net retail price, per liter of volume capacity.
Malaysia and Thailand impose a mixed tax structure for alcohol products that is ad valorem and specific. Malaysia has a single AVT rate of 15% of the selling price while its specific tax rates range from RM1.10 to RM34.0 per liter. On the other hand, the AVT rates of Thailand generally range from 25% to 60% of the selling price; while the specific tax rates range from 70Baht/liter to 400Baht/liter.
Also noted in Thailand is the imposition of an excise tax on absolute alcohol products such as those used in industry and medicine. However, the rates are minimal. In the Philippines, such products when rendered unfit for oral intake, are exempt from excise tax, but are subject to the VAT.
