The US soft-drink giant Coca-Cola Co has pledged to increase its local investments if taxes on the sector are eased.
Coca-Cola is set to ramp up annual investment from about one billion baht should the government revise its tax and price control structures, said Kiat Sittheeamorn, head of the Thailand Trade Representative office, quoting Coca-Cola chairman and CEO Muhtar Kent.
Mr Kent met Prime Minister Abhisit Vejjajiva yesterday.
The carbonated soft drink industry in Thailand is currently subject to a relatively tough regulatory system, as it encounters both excise tax and the Commerce Ministry's price watch list.
Soft drinks are categorised as a luxury product by the Finance Ministry, which subjects them to excise tax as high as 21%. The Commerce Ministry must also be informed before any price increase.
Mr Kiat said the American company saw existing measures as an unfair practice and a key obstacle for its investment expansion in Thailand.
Price controls on soft drinks are only enforced in some Asean countries including Cambodia, Vietnam, Laos and Thailand, said Mr Kent.
The premier yesterday promised to consider Coca-Cola's request and directed the TTR to study how to address the complaint.
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