Bangkok--6 Jul--TRISRating TRIS Rating Co., Ltd. today announces that the Cabinet approval in principle to adjust maximum excise tax on alcoholic beverage does not immediately affect the ratings and outlook of Thai Beverage PLC (ThaiBev). The rating agency says currently it is too early to evaluate the full impacts of potential excise tax increase on the consumption of alcoholic drinks. The remark is a response to the resolution passed by the Cabinet on 3 July 2007 to raise ceiling for the excise tax rate to 90% of the ex-distillery price or Bt1,000 per litre of pure alcohol, whichever is higher. The current tax ceiling is 50% or Bt400 per litre of pure alcohol for distilled liquor and 60% of the ex-refinery price or Bt100 per litre of pure alcohol for fermented alcoholic beverage. Currently, ThaiBev is charged an excise tax at 55% of ex-factory price for beer and Bt400 per litre of pure alcohol for color spirits. However, TRIS Rating expresses concern over the newly revised Spirits Act should it become law and the Cabinet decide to raise the excise rates. Producers will likely pass on tax expense to consumers, leading to higher spirits and beer prices, which will subsequently hurt the consumption and sales volume of alcoholic drinks. TRIS Rating adds that the actual rise in excise tax will consequently impact sales or margins of alcoholic beverage producers, like ThaiBev, and thus it will pay close attention to any government’s actions that may significantly impact ThaiBev’s financial profile. ThaiBev, a leading producer of beer and spirits in Thailand, is currently assigned “AA-” company and guaranteed issue ratings with “stable” outlook by TRIS Rating. TRISRating Co., Ltd. (TRISRating)Tel: 66 (0) 2231-3011 Ext. 500, Fax: 66 (0) 2231-3012E-mail: [email protected]