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Liquor Import: Draft Ministerial Regulation to Modernize Liquor Import Framework and Support Tourism Sector

On 3 February 2026, the Thai Cabinet approved in principle the draft Ministerial Regulation on Permission to Import Liquor into the Kingdom (amending the Ministerial Regulation B.E. 2560 [2017], as amended by Ministerial Regulation No. 2 B.E. 2562 [2019]), as proposed by the Ministry of Finance through the Excise Department.

The primary purpose of this amendment is to update and rationalize the regulatory regime governing liquor imports. The existing framework has imposed certain procedural and substantive limitations that hinder legitimate business activities and complicate excise tax administration under the licensing system. The revision seeks to streamline procedures, remove unnecessary legal obstacles, facilitate importers, strengthen tax oversight through digital tools, and align the regime with national policies to promote tourism by enhancing product diversity, stimulating tourist spending, and creating greater economic value in the sector, consistent with the Cabinet resolution dated 28 November 2023.

The draft regulation introduces four substantive amendments:

1.  Clarification and Strengthening of Type 5 Import License Provisions
The amendment grants the Director-General of the Excise Department explicit authority to define detailed criteria, procedures, and permitted purposes for Type 5 licenses (covering imports not falling under Types 1–4). This resolves previous ambiguity that allowed broad interpretation and potential misuse.
Initial categories to be specified include importation for re-export, use as raw material or component in non-liquor industries, importation as non-commercial samples or for personal consumption (limited to 200 litres per occasion), and importation of rectified spirit for industrial production of plant-based ethylene.

2.  Abolition of the Sole Agent Requirement for Type 1 Import Licenses
The previous condition requiring Type 1 license applicants (import for sale, excluding duty-free retail under customs law) to be the exclusive agent of the imported brand is removed. This change enables multiple importers to handle the same brand, thereby fostering greater competition.
The relaxation will initially apply only to wine and sparkling wine. The Director-General retains discretion to reimpose the sole agent condition for other liquor categories if warranted. The Excise Department’s Imported Liquor Price Database system now provides reliable price benchmarking, valuation, and smuggling detection capabilities, rendering the sole agent mechanism less essential for tax control.

3.  Introduction of Electronic Submission Channels
Applications for import licenses may now be filed either in person at the appropriate Excise Area Office or Branch Office (corresponding to the Customs clearance location) or electronically via designated digital platforms. This dual mechanism significantly improves administrative efficiency and accessibility for importers.

4.  Simplification of Label Submission Requirements (Type 1 Licenses)
The mandatory prior approval of container labels before applying for a Type 1 license has been eliminated. Importers are now required only to submit sample labels that fully comply with the criteria and content specifications announced by the Director-General of the Excise Department. This reduction in procedural burden is supported by the department’s established electronic label verification infrastructure.

The Ministry of Finance has confirmed that the amendments do not alter excise tax rates or taxable bases; accordingly, no reduction in state revenue is anticipated. The revised system is expected to enhance tax collection effectiveness and further curb illicit importation.

The proposal was subject to public hearing and received concurrence in principle from relevant ministries and agencies, including Tourism and Sports, Commerce, Public Health, Industry, and the Office of the National Economic and Social Development Council. The Council of State has advised that the Cabinet possesses the authority to approve the draft in principle, as the matter constitutes routine regulatory adjustment and does not impose binding obligations on future administrations pursuant to Section 169 (1) of the Constitution.

Key Takeaways:

•  The regulation modernizes Thailand’s liquor import licensing regime by removing outdated restrictions and integrating digital processes.

•  Elimination of the sole agent requirement (initially for wine and sparkling wine) promotes fairer market competition and greater product availability.

•  Enhanced administrative efficiency through electronic applications and simplified label procedures reduces burdens on legitimate importers.

•  Fiscal neutrality is preserved; no tax rate reductions are involved, while improved oversight is expected to strengthen revenue collection and reduce smuggling.

•  The measure directly supports national tourism objectives by facilitating greater variety and accessibility of imported alcoholic beverages, thereby encouraging tourist expenditure and sector growth.

•  Upon publication in the Royal Gazette, the amended regulation will enter into force, marking a structured step toward a more competitive, transparent, and tourism-aligned import framework.

Author: Panisa Suwanmatajarn, Managing Partner.

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Power Development Plan: 2026 Plan Advances Alignment with Net-Zero Emissions by 2050

The Energy Policy and Planning Office (EPPO) is advancing the preparation of Thailand’s Power Development Plan for the period 2026–2050, designated as PDP 2026. This revision aims to secure reliable electricity supply over the long term      while ensuring full consistency with the nation’s accelerated commitment to achieving net-zero greenhouse gas emissions by 2050.

The Power Development Plan functions as Thailand’s authoritative strategic framework governing electricity generation, transmission infrastructure, and overall system reliability across an extended multi-decade period. It undergoes regular review to incorporate changes in economic projections, technological progress, energy security imperatives, environmental priorities, and evolving demand profiles. The forthcoming edition extends the horizon to 25 years and establishes a markedly more stringent emissions trajectory than prior iterations.

Principal Elements of PDP 2026:

•  Extended timeframe and accelerated climate target
The planning period covers 2026–2050, with the net-zero greenhouse gas emissions objective shifted forward from 2026 to 2050, aligning with prevailing international climate obligations.

•  Elevated renewable energy integration
The plan seeks a clean energy proportion surpassing 50% of total generation, emphasizing utility-scale solar photovoltaic systems, onshore and offshore wind capacity, and floating solar arrays on reservoirs operated by the Electricity Generating Authority of Thailand (EGAT). Technical potential for these renewable resources is assessed at 5,000–10,000 MW.

•  Upgraded reliability framework
Adoption of the Loss of Load Expectation (LOLE) standard, a globally accepted benchmark, restricts anticipated unserved energy to no more than 0.7 days per year (approximately 16 hours annually), preserving supply stability in the presence of variable renewables and increasing load requirements.

•  Anticipation of demand-side transformations
Forecasts integrate heightened electricity consumption arising from data centers, artificial intelligence infrastructure, rapid electric vehicle penetration, and volatility in international energy markets.

•  Assessment of advanced low-carbon solutions
The framework examines the prospective contributions of small modular reactors (SMRs) and carbon capture and storage (CCS) technologies as viable complements to support decarbonization while maintaining system firmness.

•  Economic and operational coherence
Projections rest on an assumed average annual GDP growth of 2.5–2.6%, with EGAT’s mandate adjusted to guarantee enduring system security.

Key Takeaways:

•  PDP 2026 signals a fundamental reorientation toward a renewables-led electricity system, channeling investment into solar, wind, battery storage, transmission reinforcement, and intelligent grid technologies, while constraining opportunities for additional coal and inflexible natural gas capacity.

•  Realization of the plan’s ambitions demands significant front-loaded capital allocation to infrastructure and flexibility assets to comply with the LOLE reliability threshold amid intermittent renewable output and demand escalation.

•  The transition promises sustained cost efficiencies and environmental benefits, including enhanced air quality, though it introduces short-term pressures such as tariff adjustments, reliance on global supply chains for storage and renewable components, and structured reskilling initiatives for communities linked to fossil fuel activities.

•  Effective execution will require prompt advancement in procurement procedures, market restructuring, transmission development, and dedicated just-transition policies to achieve a resilient, cost-competitive, and inclusive power sector in support of Thailand’s 2050 net-zero objective.

Author: Panisa Suwanmatajarn, Managing Partner.

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Draft Climate Change Act: Full Overview with Detailed Emissions Trading System (ETS) Explanation

Thailand is preparing to introduce one of the most comprehensive climate frameworks in ASEAN — the Draft Act on Climate Change B.E. … (the “Draft Act”). The Cabinet approved the draft in principle in 2025, and it is expected to pass Parliament and enter into force in early 2027 (B.E. 2570). Once enacted, the Act will serve as the primary legal instrument for achieving Thailand’s updated NDC 3.0 targets, including carbon neutrality by 2050 and net-zero greenhouse gas (GHG)emissions by 2065, practically aligning with earlier aspirations for net-zero by 2050.

The Draft Act is designed to complement the forthcoming Clean Air Act, creating a twin-pillar system addressing both greenhouse gas mitigation and air pollution control.

  1. Overview of the Draft Act

The Draft Act consists of 205 sections across 14 chapters and establishes the following core legal mechanisms:

  • Legally binding national climate targets and sectoral pathways;
  • A centralized governance framework, including a National Climate Change Committee (NCCC) chaired by the Prime Minister;
  • Five climate-related market-based and financial mechanisms:
    • Climate Fund,
    • Mandatory emissions reporting and an Emissions Trading System (ETS),
    • A proposed Thailand Carbon Border Adjustment Mechanism (CBAM),
    • domestic carbon tax, and
    • Thailand Taxonomy for sustainable finance; and
  • Robust monitoring, reporting, verification (MRV), and enforcement provisions
  • Key Requirements for the Private Sector

The Draft Act imposes binding obligations on covered entities and large emitters, including:

• Mandatory greenhouse gas (GHG) emissions reporting;

• Participation in the ETS (for regulated installations);

• Compliance with carbon tax and CBAM obligations;

• Submission of verified emissions and activity data;

• Exposure to audits and administrative sanctions; and

• Alignment with sustainability-related disclosure and taxonomy requirements.

  • Detailed Explanation of the Emissions Trading System (ETS)

The ETS, codified in Chapter 8 (Sections 74–100), establishes a mandatory national cap-and-trade system and serves as the central economic mechanism under the Draft Act. It is designed to drive cost-effective emission reductions through a market-based approach. A national emissions cap will be set in accordance with Thailand’s climate targets, and tradable emissions allowances will be allocated through free allocation and/or auction. Entities that emit beyond their allocated allowances will be subject to fines.

  • Core Design

Under the ETS design, Thailand’s system aims to gradually reduce emissions through an annually declining national cap. The system will regulate approximately 300 large or strategically significant industrial facilities and will issue “allowances,” each representing one tonne of CO₂e. Covered entities must monitor their annual emissions and surrender sufficient allowances by 30 April of the following year to match their verified emissions.

During the initial phase (2028–2030), most allowances will be distributed for free to ease the transition for industry; however, this free allocation will decline over time, shifting toward a more market-based approach where entities will increasingly need to purchase or trade allowances. A reserve of 5–10% will be maintained to support new entrants, plant closures, or early-action performers.

  • Trading & Flexibility

The Draft Act permits flexibility mechanisms aimed at market efficiency:

  • Bilateral over the counter (OTC) and exchange-based trading.
  • Unlimited banking of surplus allowances.
  • Limited borrowing of future allowances (up to 10–20% of next year’s allocation)
  • Use of domestic and international offset credits, subject to a cap (approximately 5–10%)
  • MRV Requirements

MRV is a central component of the ETS, ensuring credibility and enforceability of emissions data. Regulated entities must:

  • Annual monitoring plans must be prepared and submitted.
  • Verified reports emissions reports must be submitted by 31 March each year.
  • Verification must be conducted by DCCE-accredited third-party bodies.
  • The DCCE may conduct random audits to ensure compliance and data accuracy.
  • Penalties

This Draft Act imposes criminal and administrative penalties according to the seriousness of the offence, including:

  • Fines of up to THB 5,000,000 or three times the benefit gained for false reporting;
  • Fines of up to three times the auction price for failure to surrender sufficient ETS allowances;
  • Fines of up to THB 5,000,000 or three times the benefit gained for failure to comply with carbon border adjustment requirements;
  • Imprisonment of up to three years and/or fines of up to THB 400,000 for violations of carbon tax enforcement; and
  • Fines of THB 10,000–100,000, plus daily fines for unregistered carbon credit operations.
  • Directors and responsible officers may also be liable for offences committed by a juristic person.
  • Benefits for the Private Sector
  • Policy certainty – Ensures consistent regulatory direction even amid government changes.
  • Competitive protection – Provides safeguards for businesses through Thailand’s CBAM framework.
  • Access to funding – Opens opportunities to Climate Change Fund grants and low-interest loans.
  • Export readiness – Supports compliance with international CBAM requirements, including EU and UK frameworks.
  • First-mover advantages – Rewards early adopters through carbon allowance sales and performance benchmarking.
  • What the Private Sector Needs to Prepare (2026–2028 Roadmap)
  • 2026: Foundational Preparation
  • Build robust Scope 1, 2 (and material Scope 3) GHG accounting to establish a reliable emission baseline.
  • Collect 2–3 years of historical activity data to support future reporting and verification.
  • Self-assess likelihood of falling within around 3,000 entities expected to be subject to mandatory emission reporting, or within around 300 entities covered under the ETS.
  • 2027: Strategic Planning and Readiness
  • Conduct marginal abatement cost curve (MACC) analysis to prioritize least-cost mitigation actions.
  • Participate in public hearings on upcoming regulations to stay aligned with emerging requirements.
  • Train staff or contract accredited verifiers to ensure MRV readiness.
  • 2028–2030: Alignment and Long-Term Integration
  • Develop 2030–2050 decarbonization roadmaps consistent with sectoral and national targets.
  • Budget for carbon-tax pass-through costs as carbon pricing mechanisms begin to take effect.
  • Map supply-chain embedded emissions, especially for CBAM-affected firms, to prepare for cross-border compliance.

As the Draft Act is still undergoing the legislative process, businesses should closely monitor regulatory developments to ensure timely preparation and alignment with the final requirements.

Conclusion

The Draft Act marks a significant step in Thailand’s climate governance, establishing a comprehensive national framework and introducing tools such as the ETS, carbon tax, CBAM, and Climate Fund. For businesses, the Draft Act presents both obligations and opportunities. Early preparation will enhance regulatory readiness, unlock financial incentives, and support international competitiveness.

Key Takeaways

Businesses in or trading with Thailand should view the next 18–24 months as a crucial period to prepare for this transformative legislation.

Thailand is rolling out a comprehensive, EU-style climate package, combining national targets, an ETS, a carbon tax, CBAM, a Climate Fund, and the Thailand Taxonomy.

Large emitters will be subject to mandatory reporting starting year 2027–2028, with enforceable carbon pricing expected around 2030.

The system rewards early action and protects domestic industry.

The years 2026–2027 is the decisive preparation and influencing window.

Author: Panisa Suwanmatajarn, Managing Partner.

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Clean Air Management Act Advances: House Passage Signals Momentum Toward Enactment

In a landmark achievement for environmental governance in Thailand, the House of Representatives has approved the Draft Clean Air Management Act B.E. .… (ร่างพระราชบัญญัติบริหารจัดการเพื่ออากาศสะอาด พ.ศ. ….) in its second and third readings on October 21, 2025. This comprehensive legislation, poised to serve as Thailand’s inaugural framework for systematically combating air pollution—especially fine particulate matter (PM2.5)—preserves the pivotal Clean Air Fund following robust parliamentary defense grounded in academic evidence. With unanimous support in the final vote (309 in favor, none opposed), the bill now proceeds to the Senate, marking a critical step toward enshrining sustainable air quality protections into law. Its passage reflects a national consensus on addressing the profound health and economic repercussions of pollution, while balancing accountability with transitional support.

Key Features of the Legislation:

The act delineates a multifaceted strategy for air quality management, encompassing prevention, monitoring, enforcement, and remediation. Central to its efficacy is the “polluter pays principle,” which ensures that emission sources fund mitigation efforts. Chapter 6, the Clean Air Fund, remains intact as a specialized repository, differentiated from general environmental funds to guarantee targeted application.

Notable elements include:

•  Funding Mechanisms: Proportional levies on polluters based on emission quantities, augmented by fees, incentives for reductions, and penalties for violations.

•  Expenditure Priorities: Direct allocation for pollution control, compensation to affected individuals and communities, and subsidies for emitters transitioning to cleaner operations.

•  Oversight Structure: A dedicated committee to oversee operations, fostering transparency and the establishment of emission tracking systems and supporting infrastructure.

Additional provisions integrate economic tools—such as emission trading schemes and innovation grants—with civil remedies, criminal penalties, and administrative controls. Phased implementation clauses accommodate gradual adaptation across sectors, prioritizing those with outsized pollution impacts, including agriculture, industry, and transport.

Implications for the Public:

The legislation promises substantial relief for Thailand’s population, where air pollution annually contributes to over 9 million health-related incidents and incurs billions in medical expenses. The Clean Air Fund’s provisions for victim support—encompassing treatment reimbursements and enhanced community access to judicial remedies—directly empower those disproportionately impacted, such as low-income urban dwellers and rural populations enduring seasonal haze.

light road landscape sign

On a macro level, it bolsters nationwide air monitoring networks and public education initiatives, promoting equitable environmental justice. By channeling polluter revenues into remediation rather than relying on general taxation, the act alleviates fiscal pressures on public resources, enables swifter responses to acute pollution events, and cultivates a culture of shared responsibility. These reforms stand to yield enduring public health dividends, fostering a society where clean air is a realized right, unmarred by preventable respiratory ailments and productivity losses.

Impacts on Business Operations:

For enterprises in pollution-prone industries, the act heralds a paradigm shift toward internalized environmental costs. Mandatory emission inventories and scaled fees will elevate operational expenses for high emitters, potentially manifesting as charges per unit of pollutants like PM2.5 precursors, thereby influencing supply chains, pricing strategies, and profit margins.

Yet, the framework tempers these challenges with opportunities: fund-derived grants for technological retrofits and process optimizations can offset compliance investments, conferring a first-mover advantage in sustainability. Heightened enforcement—via fines, shutdowns, or legal liabilities—underscores the perils of inaction, while regulatory ripple effects may compel upstream suppliers to align with standards. Collectively, these dynamics propel businesses toward resilient, low-emission models, harmonizing profitability with Thailand’s green economic imperatives.

Preparations for Business Operators:

Anticipating enactment, operators in affected sectors should adopt a forward-looking compliance regimen:

1.  Conduct Emission Assessments: Perform detailed audits to map pollution profiles, pinpoint vulnerabilities, and align with anticipated regulatory benchmarks.

2.  Formulate Transition Strategies: Outline blueprints for adopting emission-abating technologies, such as advanced filtration or renewable integrations, while scouting fund-eligible subsidies.

3.  Implement Monitoring Frameworks: Deploy automated tracking systems and upskill staff on reporting obligations to synchronize with centralized data platforms.

4.  Foster Collaborative Networks: Engage trade bodies, consultants, and peers to shape subsidiary regulations and pool resources for collective adaptation.

5.  Refine Financial Projections: Integrate fee projections into fiscal models, evaluating scenarios for cost recovery through efficiency or market differentiation.

Proactive measures not only avert penalties but also catalyze innovation, positioning firms as exemplars in the evolving sustainable marketplace.

Current Stage and Next Steps:

As of October 22, 2025, the bill has secured passage through the House of Representatives following intensive deliberations across seven sessions since September 24, 2025. Originally comprising 104 sections, it expanded to nearly 300 through amendments, yet retained 90% of citizen-initiated content, including the Clean Air Fund, after evidence-based rebuttals to excision proposals.

The bill now advances to the Senate for review, with a 30-day initial deliberation period (extendable by another 30 days). Senate approval would precede royal assent, leading to publication in the Royal Gazette and staggered rollout over ensuing years. Continued stakeholder engagement—via submissions and advocacy—will be instrumental in upholding core provisions during this phase. Should timelines align, full enactment could precede the parliamentary dissolution anticipated in late January 2026.

Key Takeaways:

•  House of Representatives on October 21, 2025, with near-unanimous support, affirms the Clean Air Fund’s role in operationalizing the polluter pays principle for equitable pollution financing.

•  Citizens gain fortified protections through victim aid and rapid remediation, curbing the health burdens of PM2.5 and allied pollutants.

•  Businesses confront fee-based accountability, but benefit from transition incentives, demanding strategic audits and green investments for sustained viability.

•  Senate scrutiny looms as the decisive hurdle; vigilant public and expert involvement is paramount to safeguard the bill’s transformative potential.

•  This act epitomizes Thailand’s strategic pivot to environmental stewardship, intertwining cleaner air with inclusive prosperity for generations ahead.

Author: Panisa Suwanmatajarn, Managing Partner.

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Amendment to Alcoholic Beverages Control Act – Key Provisions and Enhancements

Thailand has enacted the Alcoholic Beverages Control Act (No. 2) B.E. 2568 (2025) (“Act”), published in the Royal Gazette on 9 September 2025. This legislation introduces a comprehensive framework to regulate alcoholic beverages, focusing on public health while addressing modern market dynamics. It refines definitions, strengthens advertising controls, and updates enforcement mechanisms to align with contemporary social, technological, and economic conditions. This article outlines the key provisions of the Act, emphasizing definitions, marketing communications, and highlighting its advancements over the initial proposed draft.

Key Provisions of the Act

  1. Definition of “Alcoholic Beverages”
This Act provides a broad and precise definition of “alcoholic beverages,” encompassing traditional products like beer, liquor, wine, and spirits, as well as modern categories such as ready-to-drink beverages, low-alcoholic beverages, and other innovative alcoholic products anticipated in the future. This inclusive definition ensures regulatory coverage of emerging market trends. Beverages with an alcohol content of less than 0.5%, along with herbs, medicines, and drugs, are explicitly excluded to focus regulation on recreational consumption. Comparing to the initial proposed draft amendment, it aimed to clarify the term “alcoholic beverages”, but did not explicitly address newer categories like ready-to-drink or low-alcoholic beverages. This Act, on the other hand, expands this definition to anticipate market innovations and strengthening regulatory oversight.

2.  Definition of “Marketing Communications”
This Act defines “marketing communications” comprehensively, covering all activities that promote sales, services, or brand images. This includes advertising, public relations, promotions, product displays, sponsorships, and direct marketing, with a particular focus on digital and online platforms. The legislation strictly prohibits any marketing activities that encourage alcohol consumption, including the use of brand names or logos to sponsor events or promote consuming. Comparing to the initial proposed draft amendment, it defined “marketing communications” and restricted advertising that promotes alcohol consumption. This Act enhances this by explicitly including digital marketing and online platforms, addressing the rise of social media and e-commerce in alcoholic beverage promotion.

3.  Prohibition on Advertising and Promotional Activities
This Act bans all forms of advertising, public relations, sponsorships, or online marketing that encourage alcoholic beverage consumption. Only informational or educational messages that benefit society, as approved by the Minister of Public Health under the Alcoholic Beverage Control Committee’s recommendation, are permitted. This ensures that promotional activities do not undermine public health objectives.
Comparing to the initial proposed draft amendment,it prohibited advertising that glorifies alcohol but was less explicit about digital channels and sponsorships. The Act strengthens this by comprehensively banning all promotional activities, including online marketing, closing potential loopholes.

4.  Penalties and Enforcement
This Act establishes penalties to ensure compliance, calibrated to current economic and social contexts. For example, consuming alcoholic beverages in restricted zones incurs a fine of up to 5,000 THB (Section 39/1), while other violations may result in fines up to 30,000 THB (Section 39/2). Manufacturers or importers violating regulations face fines up to 500,000 THB (Section 33). These penalties enhance the Act’s enforceability and deterrent effect.
Comparing to the initial proposed draft amendment, the initial proposed draft amendment introduced penalties for consumption in sales areas and increased fines for production or importation offenses. The Act refines these penalties to align with current conditions, ensuring they are proportionate and effective.

5.  Expanded Responsibilities and Rehabilitation Measures
This Act assigns broader responsibilities to the National Alcohol Policy Committee and the Alcoholic Beverage Control Committee to set policies and control measures. It also emphasizes treatment and rehabilitation for individuals with alcohol-related issues, involving agencies such as the Department of Disease Control and the National Health Security Office to support structured rehabilitation programs.
Comparing to the initial proposed draft amendment, the proposed draft amendment outlined similar responsibilities and rehabilitation measures, and the Act implements these without significant changes, maintaining a balanced approach between enforcement and public health support.

Key Differences Between the Initial Proposed Draft and the Act

•  Scope of Definitions: The initial proposed draft clarified “alcoholic beverages”,  but did not explicitly include modern product categories. This Act broadens this definition to cover ready-to-drink and low-alcohol beverages, ensuring adaptability to market trends.

•  Digital Marketing Focus: This Act explicitly regulates online and digital marketing, a critical update not emphasized in the proposed draft, reflecting the growing influence of digital platforms.

•  Penalty Adjustments: This Act refines penalties to better align with current economic and social realities, enhancing deterrence compared to the proposed draft’s initial framework.

•  Comprehensive Advertising Ban: This Act strengthens the advertising ban by explicitly covering sponsorships and online marketing, addressing gaps in the proposed initial draft.

Implications and Conclusion

This Act represents a robust framework for regulating alcoholic beverages in Thailand, balancing public health with economic considerations. By refining definitions, particularly for “alcoholic beverages” and “marketing communications,” and addressing modern marketing practices, to ensure comprehensive regulatory coverage. The focus on digital platforms and stricter advertising bans makes it relevant to today’s marketing landscape, while updated penalties enhance enforcement. Stakeholders, including manufacturers, importers, and businesses, must adapt by reviewing marketing strategies, ensuring compliance with advertising restrictions, and investing in responsible practices. This Act’s emphasis on rehabilitation further underscores Thailand’s commitment to addressing alcohol-related issues holistically, promoting a healthier and more sustainable society.

Author: Panisa Suwanmatajarn, Managing Partner.

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Liquor Production: Empowering Farmers and Small-Scale Entrepreneurs

In June 2025, the Royal Gazette of Thailand published the Excise Tax Act (No. 2) B.E. 2568 (2025), marking a significant reform in the country’s liquor production regulations. Effective June 6, 2025, this legislation amends the Excise Tax Act B.E. 2560 (2017) to facilitate greater access to legal liquor production licenses for farmers, cooperatives, community enterprises, and small-scale entrepreneurs. The act aims to promote economic fairness, support local agriculture, and reduce barriers to entry in the liquor industry while ensuring consumer protection and regulatory compliance.

Background and Purpose:

The Excise Tax Act (No. 2) B.E. 2568 (2025) was enacted to address the restrictive nature of previous regulations, which limited opportunities for small-scale producers to legally enter the liquor market. By revising Section 153 of the Excise Tax Act B.E. 2560 (2017), the new law simplifies the licensing processes and encourages the use of domestic agricultural products in liquor production. This reform aligns with Thailand’s constitutional provisions under Sections 26 and 40, which allow for the restriction of rights and freedoms only to protect consumers and regulate professional activities in a fair and non-discriminatory manner.

The primary objectives of the revised Act are to:

  • Promote economic inclusivity by enabling small-scale producers, including farmers and community enterprises, to obtain liquor production licenses.
  • Support the use of local agricultural products in the production of diverse types of liquor, including flavored or colored varieties.
  • Eliminate unfair economic monopolies and discriminatory practices in the licensing process.
  • Ensure that regulations do not impose undue burdens on applicants, except where necessary to limit foreign ownership or support state enterprises and small-scale industries.

Key Provisions of the Revised Act:

1. Simplified Licensing Processes (Section 3)

The amended Section 153 of the Excise Tax Act B.E. 2560 (2017) allows individuals or entities wishing to produce liquor or possess distillation equipment to apply for a license from the Director-General of the Excise Department. The application and issuance processes are governed by criteria, methods, and conditions outlined in ministerial regulations. These regulations must prioritize:

  • Supporting cooperatives, farmer groups, community enterprises, and small-scale entrepreneurs in obtaining licenses for commercial liquor production.
  • Promoting the use of domestic agricultural products in liquor production.
  • Ensuring fairness by prohibiting criteria that create economic monopolies, discriminatory practices, or unnecessary burdens, except in cases involving foreign ownership restrictions or state enterprises.

Licenses issued under this section are valid for three years from the date of approval.

woman signing documents

2. Transition and Implementation (Section 4)

Existing ministerial regulations, announcements, and rules issued under the Excise Tax Act B.E. 2560 (2017) remain in effect until new regulations are enacted, provided they do not conflict with the amendments. The Ministry of Finance is tasked with issuing updated regulations within 180 days from the revised Act’s effective date (i.e. June 6, 2025).

3. Pending Applications (Section 5)

Applications submitted before the revised Act’s effective date (i.e. June 6, 2025) will be processed under the amended law. If any application does not comply with the new requirements, the Director-General of the Excise Department will notify applicants to make necessary adjustments.

4. Validity of Existing Licenses (Section 6)

Licenses issued under the previous Section 153 remain valid until their expiration, ensuring a smooth transition for current license holders.

5. Oversight and Enforcement (Section 7)

The Minister of Finance is responsible for overseeing the implementation of the revised Act, ensuring compliance with its provisions and objectives.

Implications for Stakeholders:

Farmers and Agricultural Communities

The revised Act empowers farmers and agricultural cooperatives by allowing them to transform local produce into value-added liquor products. This creates new income streams and supports rural economies by leveraging Thailand’s rich agricultural resources.

Small-Scale Entrepreneurs

By removing discriminatory barriers and simplifying the licensing process, the act enables small-scale entrepreneurs to enter the liquor market legally. This fosters innovation, encourages the production of unique and artisanal liquors, and promotes competition in an industry previously dominated by larger players.

Consumers

The Revised Act’s emphasis on consumer protection ensures that all liquor produced under the new licensing framework meets safety and quality standards. Consumers may also benefit from a wider variety of locally produced liquors, potentially at more competitive prices.

Government and Regulatory Bodies

The Excise Department is tasked with developing clear and fair regulations within the 180-day timeframe. This includes establishing standards for liquor production and ensuring that the licensing process is accessible and transparent.

Challenges and Considerations:

While the act is a significant step toward economic inclusivity, its success depends on the timely issuance of clear ministerial regulations. The 180-day deadline for updating rules is critical to avoid delays in implementation. Additionally, the Excise Department must balance consumer safety with the need to minimize bureaucratic hurdles for small-scale producers. Monitoring foreign ownership and ensuring compliance with production standards will also be key to maintaining fairness and protecting local interests.

person holding clear glass

Conclusion:

The Excise Tax Act (No. 2) B.E. 2568 (2025) represents a transformative shift in Thailand’s liquor industry, unlocking opportunities for farmers, cooperatives, and small-scale entrepreneurs. By promoting the use of domestic agricultural products and eliminating unfair barriers, the act fosters economic growth, innovation, and inclusivity. As Thailand moves toward a more equitable and vibrant liquor market, the effective implementation of this legislation will be crucial to realizing its full potential.

Key Takeaways:

  • Transition Period: Existing licenses remain valid, and pending applications will be processed under the revised Act and its regulations, with adjustments as needed.
  • Effective Date: The Excise Tax Act (No. 2) B.E. 2568 (2025) takes effect on June 6, 2025, with new regulations to be issued within 180 days.
  • Simplified Licensing: The amended Section 153 facilitates access to liquor production licenses for farmers, cooperatives, and small-scale entrepreneurs.
  • Support for Local Agriculture: The revised Act encourages the use of domestic agricultural products in liquor production and boosting rural economies.
  • Fairness and Transparency: Licensing criteria must avoid discriminatory practices, monopolies, or excessive burdens, except for foreign ownership restrictions.
  • Consumer Protection: The revised Act ensures that all licensed liquor production meets safety and quality standards.

Author: Panisa Suwanmatajarn, Managing Partner.

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Liquor Industry: Empowering Small-Scale Producers

Introduction:

Alcohol production in Thailand is a vital part of the economy, deeply rooted in local culture, traditional knowledge, and agriculture. The Liquor Act B.E. 2493 (1950) has long governed the sector with stringent licensing requirements, such as minimum machinery size, employee numbers, and capital investment. These rules have favored large corporations, creating significant barriers for small-scale producers and stifling competition and innovation.

To address these challenges, the Thai government introduced the Ministerial Regulation on the Production of Liquor B.E. 2565 (2022), which aimed to simplify licensing and support small and medium enterprises (SMEs) and community-based producers. Building on this, the Draft Ministerial Regulation on the Production of Liquor (No. ..), B.E. …. (the “Draft Ministerial Regulation“), approved by the Thai Cabinet on May 13, 2025, further advances these reforms by promoting inclusivity and sustainability in the liquor industry.

Recent Developments in the Draft Ministerial Regulation:

The Draft Ministerial Regulation, proposed by the Ministry of Finance, underwent public consultation from December 25, 2024, to January 9, 2025, via the Excise Department’s website and Thailand’s central legal portal. It seeks to balance high production standards with increased support for local enterprises, including agricultural cooperatives and small-scale producers. The regulation aims to foster fair competition, integrate local wisdom, and promote Thailand’s soft power through cultural and creative industries while aligning with the ease of doing business policy.

Key Amendments in the Draft Ministerial Regulation:

  1. Relaxed Location Restrictions for Distilleries
    Previously, small and medium scale distilleries were required to be located at least 100 meters from public water sources. The Draft Ministerial Regulation allows distilleries to operate closer if they install wastewater treatment systems meeting Excise Department environmental standards, reducing barriers for small producers.
  2. Elimination of the One-Year Progression Requirement
    Medium-scale producers no longer need to operate as small-scale facilities for one year before applying for a production license. This streamlines the licensing process, making it easier for new entrants to join the market.
  3. Support for Craft Beer and Fresh Beer Markets
    Breweries producing fresh beer can now distribute their products off-site in designated containers like kegs, creating new opportunities for Thailand’s growing craft beer industry.
  4. Updated Terminology for Clarity
    The term “industrial fermented liquor facility for on-site beer sales” has been replaced with “fresh beer industrial facility” to better align with modern craft beer business practices, improving regulatory clarity.
shot glasses placed on tabletop

Alignment with Broader Reforms:

The Ministerial Regulation on the Production of Liquor B.E. 2565 (2022) laid the groundwork for liberalizing the liquor industry, but small producers still faced challenges. The Draft Ministerial Regulation builds on this by further easing restrictions and complements proposed legislative reforms, such as the Draft Progressive Liquor Law, the Draft United Thai Liquor Law, and the Draft Community Liquor Law. Together, these initiatives aim to create a more open, competitive, and diverse liquor industry.

Conclusion:

The Draft Ministerial Regulation marks a pivotal step toward revitalizing Thailand’s liquor industry by empowering small-scale and community-based producers. By reducing regulatory hurdles and promoting local entrepreneurship, it fosters innovation and cultural preservation while enhancing economic opportunities. Stakeholders, including small producers and entrepreneurs, should monitor the Draft Ministerial Regulation’s finalization and implementation to ensure compliance and seize emerging opportunities.

Author: Panisa Suwanmatajarn, Managing Partner.

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EIA: Proposed Amendments to the Environmental Impact Assessment Regulations

Introduction:

The Ministry of Natural Resources and Environment in Thailand has introduced a draft amendment to the Environmental Impact Assessment (EIA) regulations, calling for public comments and feedback. This draft amendment aims to refine the EIA process, ensuring that development projects are conducted with greater environmental accountability and public involvement. The proposed changes will impact various industries, particularly those involved in large-scale infrastructure and commercial developments. This article outlines the key takeaways from the draft amendment and what businesses need to prepare for as these amendments move closer to implementation.

Key Takeaways:

Revised Definitions and Project Categories

The draft amendment proposes to revise the definitions in the EIA regulations, specifically removing the terms “retail or wholesale business buildings” and “retail or wholesale business.”

The categories of projects requiring an EIA have been updated. Notably, projects involving highways or roads passing near historical sites within a 500-meter radius and large commercial buildings with a usable area exceeding 10,000 square meters will now require an EIA.

Increased Scrutiny for High-Impact Projects. Projects that are likely to have significant environmental impacts, such as large-scale commercial developments and infrastructure projects near sensitive areas, will face stricter scrutiny. These amendments emphasize the need for public participation in the EIA process, ensuring that the concerns of affected communities are adequately addressed.

houses beside body of water

Enhanced Public Participation

The revised regulations mandate greater public involvement in the EIA process. This includes public hearings and consultations with stakeholders, ensuring transparency and accountability.

Periodic Review and Updates

The EIA regulations will be reviewed every five years, or sooner if necessary, to ensure they remain relevant and effective in addressing emerging environmental challenges.

What the Industry Needs to Be Prepared For:

Comprehensive Environmental Assessments

Businesses must be prepared to conduct thorough environmental assessments for projects that fall under the revised categories. This includes detailed studies on potential environmental impacts, mitigation measures, and monitoring plans.

Engagement with Stakeholders

Companies will need to engage more actively with stakeholders, including local communities, environmental groups, and regulatory authorities. Effective communication and transparency will be key to gaining approval for projects.

Adaptation to New Requirements

The industry must stay informed about the latest regulatory changes and adapt their project planning and execution processes accordingly. This may involve additional resources and expertise to comply with the new EIA requirements.

Proactive Environmental Management

Businesses should adopt proactive environmental management practices to minimize the impact of their projects. This includes implementing sustainable practices, reducing waste, and enhancing resource efficiency.

Conclusion

The draft amendment highlights the government’s commitment to sustainable development and environmental protection. By understanding and preparing for these changes, businesses can ensure compliance, foster positive community relations, and contribute to the long-term health of the environment. The industry must embrace these challenges as opportunities to innovate and lead in sustainable development practices.

Author: Panisa Suwanmatajarn, Managing Partner.

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Liquor Law Reform: A Step Towards Revitalizing the Industry

Introduction:

The Liquor Act B.E. 2493 (1950) (“the Act”) was enacted in Thailand to regulate liquor production, requiring producers to obtain government licenses. However, the Act imposes stringent requirements that have created significant barriers for small and medium-sized enterprises (SMEs) to participate in the industry. These restrictions have allowed large corporations to monopolize the market, thereby stifling competition and innovation.

In response to these challenges, Thailand introduced the Ministerial Regulation on the Production of Liquor B.E. 2565 (2022)(“the Regulation”). This Regulation seeks to address some of the difficulties posed by the Act by introducing measures to support SMEs and community-based liquor production. Key provisions of the Regulation include:

  1. Defining Small to Medium-Scale Industrial Breweries:
    • Small producers are permitted to use machinery not exceeding 5 horsepower and employ fewer than 7 workers.
    • Medium-sized producers may utilize machinery up to 50 horsepower and employ a maximum of 50 workers.
  2. Requirements for Commercial Liquor Production:
    • Production requirements are tailored to the type of liquor (e.g., fermented or distilled).
    • Conditions include shareholder composition, machinery specifications, and adherence to environmental and public health regulations.
  3. Requirements for Non-Commercial Liquor Production:
    • Producers must specify production locations and processes.
    • Annual production is capped at 200 liters and must not create nuisances or violate safety and environmental standards.

While the Regulation provides some relief by enabling the growth of community-based breweries, numerous limitations remain. To address these issues, three draft legal instruments have been proposed to the House of Representatives.

clear glass with brown liquid

Proposed Draft Laws

  1. The Draft Progressive Liquor Law
    • Proposed by the People’s Party, this draft sought to eliminate minimum requirements for commercial liquor production, such as factory size, horsepower, employee count, and registered capital. It also allowed home brewing without regulatory conditions. However, the House of Representatives did not approve the draft’s principles.
  2. The Draft United Thai Liquor Law
    • Proposed by the United Thai Nation Party, this draft obtained the principle’s approval from the House of Representatives. It emphasizes supportive and less burdensome conditions for SMEs seeking liquor production permits.
  3. The Draft Community Liquor Law
    • Proposed by the Pheu Thai Party, this draft also gained the principle’s approval. It encourages the use of agricultural products in liquor production to create distinctive flavors and styles. Additionally, it removes minimum daily production requirements, making it easier for SMEs to enter the market.

Current Developments:

On December 26, 2024, the Draft United Thai Liquor Law and the Draft Community Liquor Law successfully passed the second draft consideration stage in the House of Representatives. Both drafts are scheduled to proceed to the third and final consideration stage on January 22, 2025. If enacted, these drafts represent significant progress toward revitalizing and diversifying Thailand’s liquor industry.

Conclusion:

The Liquor Act B.E. 2493 (1950) imposed substantial obstacles for SMEs in the liquor industry, contributing to a monopolized market. The introduction of the Ministerial Regulation B.E. 2565 (2022) provided initial reforms, but additional measures are necessary to address lingering challenges.

The proposed Draft Progressive Liquor Law, Draft United Thai Liquor Law, and Draft Community Liquor Law aim to reduce barriers for SMEs, foster competition, and promote innovation through the integration of domestic agricultural products. Although the Draft Progressive Liquor Law was rejected, the remaining drafts hold promise for a more inclusive and diverse industry.

However, these reforms must be implemented with careful planning to mitigate potential risks and maximize benefits for producers, consumers, and society at large.

Author: Panisa Suwanmatajarn, Managing Partner.

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Land and Building Tax: Thailand Introduces Legal Instruments for Tax Reduction and Exemption to Support Waterworks, Green Spaces, and Electric Railway Transportation

Introduction

The Land and Building Tax Act B.E. 2562 (2019) (the “Act”) has been enforced since January 1, 2020, serving as the legal instrument for collecting land and building tax, replacing the Land and Building Tax Act B.E. 2475 (1932) and the Local Maintenance Tax Act B.E. 2508 (1965). The Act provides for land tax exemptions and reductions in certain cases and circumstances. On December 17, 2024, the Cabinet approved three draft legal instruments aimed at expanding the scope of land tax exemptions and reductions as follows:

  1. The Draft Royal Decree on the Reduction of Land and Building Tax (No. ..) B.E. …. (Water Treatment Plant), proposed by the Ministry of Finance.

Previously, the Royal Decree on Land and Building Tax Reduction B.E. 2563 (2020) was enacted to reduce the land and building tax for 13 types of land and buildings. The new draft Royal Decree expands the tax reduction to include land and buildings used for developing water treatment plants or producing consumable water by offering a 50% reduction for these specific types of land and buildings. The amendment aims to alleviate the tax burden on water production and waterworks businesses. This support is particularly significant as water is essential and indispensable for the Thai population.

  1. The Draft Ministerial Regulation on Assets Exempted from Land and Building Tax Collection (No. ..) B.E. …. (Green Space), proposed by the Ministry of Finance.

Previously, the Ministerial Regulation on Assets Exempted from Land and Building Tax Collection B.E. 2562 (2019) and B.E. 2566 (2023) issued by virtue of the Act (the “Ministerial Regulation 2023”) established tax exemptions for certain categories of assets. The new draft Ministerial Regulation seeks to enhance the importance of reducing the greenhouse gas emissions, increasing green areas and mitigating coastal erosion by granting land and building tax exemption to lands covered with greenery that provide environmental benefits or enhance the quality of life for humans. These lands must meet one of the following characteristics:

white smoke coming out from a building
  1. Land registered with the Thailand Voluntary Emission Reduction Program (“T-VER”) under the projects categorized for reduction, absorption and storage of greenhouse gases from the forestry and agriculture sectors standardized by Thailand Greenhouse Gas Management Organization (“TGO”), specifically those projects that align with voluntary greenhouse gas reduction methodologies for reforestation and forest restoration; or
  2. Land defined as mangroves by the rules and regulations announced by the Director-General of the Department of Marine and Coastal Resources.
  3. The Draft Ministerial Regulation on Assets Exempted from Land and Building Tax Collection (No. ..) B.E. …. (Electrical Railway), proposed by the Ministry of Finance.

Additionally, another new draft Ministerial Regulation will amend the provision regarding railways specified in the Ministerial Regulation issued in 2023 by expanding the definition of “Electrical Railway.” This change aims to standardize tax exemptions for railway and electrical railway operators. The revised definition will include “Communication Equipment Room,” “signaling Equipment Room,” and “Platform Area for Passengers Waiting to Board the Train” in order to relieve the tax burden on the three main railway operators in Thailand: Bangkok Metropolitan, the State Railway of Thailand and the Mass Rapid Transit Authority of Thailand. This amendment also aligns with the tax burden relief for other types of rail transport businesses.

In conclusion, the recent draft Royal Decree and Ministerial Regulations reflect the Thai government’s efforts to promote sustainable development and reduce the tax burden on key sectors. The proposed changes focus on expanding tax reductions for land used in water treatment plants as well as providing tax exemptions for green spaces and electrical railway infrastructure. By offering these tax benefits, the government aims to support water production and environmental conservation efforts, while also fostering the growth of the transportation sector. All of these draft legal instruments are set to take effect on January 1, 2025.

Author: Panisa Suwanmatajarn, Managing Partner.

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