Proposed reforms to Thailand's tax system will include increasing maximum tax rates outlined under the law, a leading official says.

"Many taxes now stipulated under the law should be reconsidered based on the current environment," said Surapol Supradit, a tax adviser to the Excise Department.

But the review would not necessarily result in wholesale tax hikes, he said, particularly as rates for goods such as cigarettes and beer have already been recently increased by the government.

Excise taxes are collected on a range of products and services, including the sales of automobiles and air conditioners, as well as at golf courses and entertainment venues.

In some cases, such as coffee or tea drinks, no actual tax is collected, despite the law giving the Excise Department leeway to impose levies.

For other cases, taxes are collected at the maximum limit permitted under the law.

The department yesterday held a public hearing to solicit comments from other government agencies and private industry groups about its tax reform plans.

The reforms will cover five key laws involving excise taxes, including laws related to alcoholic beverages and tobacco, and excise tax classifications.

The transfer of collection authority from the Excise Department to local administrations, as outlined under other laws to decentralise government power, is among the key issues to be tackled.

A new review board will also be established to help reduce discretionary judgement by officials in imposing taxes. Changes in how taxes are assessed - including a move away from ex-factory prices to instead CIF (cost, insurance and freight) prices declared at customs for imported goods - will also be proposed.

Ex-factory prices are commonly used as the base for excise tax calculations in a range of different products, including cars and imported cigarettes.

Source: By: WICHIT CHANTANUSORNSIRI , Published: 16/06/2009 at 12:00 AM, Newspaper section: Business