Thailand has officially legalized the licensed production of community-distilled liquor, following the enactment of a revised excise law on June 6, 2025. The move aims to support local economies by opening opportunities for small-scale producers and agricultural cooperatives to legally produce and market traditional liquors.
BANGKOK — A new chapter in Thailand’s liquor industry began on June 6, 2025, with the implementation of the Excise Tax Act (No. 2), B.E. 2568. Published in the Royal Thai Government Gazette on June 5, the law significantly broadens the legal framework for community liquor production, allowing farmers and local groups to enter the market under licensed conditions.
The legislation amends Section 153 of the original Excise Tax Act, granting individuals or collectives the right to apply for permits to produce liquor or own distillation equipment. Licenses must be obtained from the Director-General of the Excise Department and must conform to conditions that will be set by future ministerial regulations.
Officials from the Excise Department indicated that these upcoming regulations are expected to simplify access for small operators, particularly farmer networks, cooperatives, and micro-enterprises using locally sourced agricultural inputs. The goal is to ensure inclusivity in licensing, while explicitly preventing the formation of monopolies or the imposition of unreasonable barriers. Exceptions may apply to foreign entities or state enterprises operating on behalf of local groups.
Licenses issued under this framework will be valid for three years. Producers will also be allowed to enhance their liquor products with added color or aroma, broadening potential market appeal, particularly in sectors tied to tourism and regional gastronomy.
Government officials have positioned the legislation as a step toward creating a more equitable and competitive spirits industry. The reform is also seen as a means of preserving cultural practices tied to traditional distillation, while integrating them into the formal economy.
According to the Excise Department, more than 2,100 producers are currently registered under the excise tax system. In the 2024 fiscal year alone, community liquor contributed over 1.2 billion baht in tax revenue — a figure that underscores the sector’s growing economic significance.
