The Excise Department is tightening its grip on excise tax evasion, pledging a rapid, zero-tolerance approach to violations and to stepping up enforcement against illicit goods that sidestep tax payments. Deputy Finance Minister Paopoom Rojanasakul has articulated a clear mandate: to prevent and confront illegal goods smuggling that avoids excise duties, especially those moving across borders and coursed through online channels. The department has signaled a decisive shift toward prosecuting individuals who sell or possess smuggled goods, with a surge in seizures underscoring this renewed commitment. A pivotal element of this strategy is a new memorandum of understanding with two private courier firms that expands the department’s ability to inspect, seize, and confiscate goods suspected of evading taxes. The collaboration with Global Jet Express (Thailand) Co and KEX Express (Thailand) aims to strengthen oversight of delivery services, a channel increasingly exploited for tax evasion through social media sales. Previously, inspections of private courier shipments required search warrants, a constraint the department now seeks to bypass in targeted cases to close gaps in enforcement. In the first six months of fiscal 2025, from October 1, 2024, to March 31, 2025, the Excise Department reported 18,254 seizures of illegal excise goods, reflecting a 13.7% year-on-year rise and accompanied by fines totaling approximately 2.7 billion baht. The data indicate a weighted focus on alcohol and tobacco, with nearly half of all cases tied to alcohol and roughly two-fifths linked to tobacco.
Policy mandate and enforcement framework
The backbone of the current crackdown is a declared zero-tolerance policy toward excise tax evasion, designed to create a robust, ongoing deterrent against illicit trade. The department’s directive emphasizes rapid action against violations and a proactive posture in pursuing those who profit from evading excise levies. This framework recognizes that tax evasion is no longer confined to traditional border smuggling; it now frequently occurs through online marketplaces and private courier networks, where shipments can slip through conventional controls. As a result, enforcement has evolved to prioritize the screening of packages that may contain tax-evading goods, particularly those routed through digital marketplaces and private delivery channels. A key governance move within this policy is the expansion of inspection authority to include private courier operations, enabling authorities to scrutinize shipments without the previously required warrants in specified circumstances. This shift reflects an intent to close gaps in oversight created by the growing digitization of commerce and the reliance on third-party delivery services to move goods across borders and domestically.
Within this policy structure, the department has also underscored the importance of prosecuting sellers and possessors of smuggled goods, arguing that meaningful enforcement requires both deterrence and accountability. The intensified enforcement posture is designed to deter both individuals who attempt to evade taxes and the networks that facilitate such activity, including online vendors, facilitators, and transport operators. The policy framework thus integrates legal authorities, interagency collaboration, and private-sector cooperation as essential pillars of a comprehensive approach to excise evasion. In practice, this means a continuous cycle of monitoring, inspection, seizure, and penalties aimed at reducing the economic incentives for illicit trading and improving compliance across the supply chain. As part of the broader strategy, authorities have signaled they will increasingly rely on data-driven targeting, cross-border intelligence, and partnerships with logistics providers to identify high-risk shipments and suspicious activity.
Cross-border dynamics and online channels driving evasion
A central feature of the current crackdown is the recognition that tax evasion is increasingly conducted via cross-border movement and online purchasing. The department highlights that illicit items are not only smuggled across borders but are also moved through digital sale platforms and private courier services, which can obscure ownership and tax compliance. In response, inspections now extend to packages suspected of containing tax-evading goods, leveraging the network of private couriers that handle substantial volumes of consumer shipments. The shift toward digital commerce as a conduit for evasion necessitates more agile regulatory tools and closer collaboration with delivery partners to identify and intercept at the point of packing, labeling, and dispatch. The emphasis on online channels also reflects a broader recognition that consumer access to tobacco, alcohol, and other regulated goods has become more convenient and widespread through e-commerce and social media platforms. This change in channel dynamics informs how enforcement efforts are allocated, with priority given to platforms and logistics routes that consistently appear in evasion schemes.
From an operational perspective, the integration of private couriers into enforcement activities expands the geographic and logistical reach of the Excise Department. With social media-driven purchases, shipments can originate from varied locales and transit through multiple intermediaries before arriving at the end consumer. The collaboration with private couriers is thus a strategic move to monitor, scrutinize, and intervene in shipments that may carry untaxed or under-taxed goods. Enforcement personnel are trained to identify red flags in packaging, documentation, and shipment patterns that might indicate evasion schemes, enabling timely interventions. The combination of digital marketplace scrutiny and courier-focused inspections constitutes a more holistic approach to combatting evasion that leverages both online intelligence and on-the-ground verification.
First-half FY2025 enforcement outcomes and implications
During the first half of fiscal year 2025, covering October 1, 2024, to March 31, 2025, the Excise Department recorded 18,254 seizures involving illegal excise goods, representing a 13.7% increase from the same period a year earlier. The total amount of fines associated with these seizures is estimated at 2.7 billion baht, underscoring the scale of enforcement actions and the potential revenue impact of detention and penalties. The distribution of cases reveals a clear concentration in two regulated product categories: alcohol and tobacco. Alcohol accounted for 46% of seizures, closely followed by tobacco at 41.6%. This suggests that the illicit alcohol and tobacco markets remain the dominant targets of enforcement, likely due to the high tax differential and consumer demand that drive evasion in these sectors.
Quantitatively, the department seized 8,396 illegal alcohol shipments in the period under review. The alcohol-related seizures encompassed 65,241 litres of domestic alcohol and 14,348 litres of foreign (imported) alcohol, illustrating a mix of domestic production and cross-border inflows used to circumvent excise duties. In the tobacco arena, 7,597 illegal shipments were seized, comprising 298,002 packs of domestic tobacco and 2.12 million packs of foreign tobacco. The figures reveal a substantial volume of illicit tobacco moving through the supply chain, highlighting the ongoing challenge of controlling both domestic and imported tobacco products that evade taxation.
Beyond alcohol and tobacco, the department reported seizures across a diverse range of goods tied to tax evasion. These other items included motorcycles, cars, playing cards, perfume, cosmetics, beverages, oils and oil products, and batteries. This broader category of seized items demonstrates the department’s comprehensive approach to deterring evasion that extends beyond the core excise commodities. While alcohol and tobacco remain the principal focus, the presence of vehicles, consumer goods, and various consumer products among seizures indicates that evasion strategies can involve a wide array of taxable items, each presenting its own enforcement challenges and revenue implications.
The overall increase in seizures can be interpreted as a signal of enhanced enforcement efficiency and a more vigilant stance against illicit trade. The rise in numbers may reflect intensified scrutiny, improved data analytics, and stronger collaboration with private courier partners, all of which contribute to more effective detection and interception of evasion schemes. The Department has framed these results as evidence of its commitment to prosecute and sanction individuals who traffic in smuggled goods, reinforcing the deterrent effect for both organized networks and opportunistic sellers. As enforcement continues, stakeholders—including legitimate retailers, courier operators, and online platforms—should anticipate ongoing surveillance, risk assessment, and compliance requirements designed to minimize opportunities for evasion and to protect tax revenues.
MoU with private couriers: Global Jet Express and KEX Express
A notable development in the department’s enforcement toolkit is the signing of a memorandum of understanding with two private courier firms: Global Jet Express (Thailand) Co and KEX Express (Thailand). The purpose of this agreement is to facilitate collaboration on inspecting, seizing, and confiscating goods suspected of evading excise taxes, thereby fortifying the department’s ability to curb smuggling via delivery services. The arrangement acknowledges that tax evasion increasingly transits through private courier networks, necessitating formal cooperation to monitor and intercept suspicious packages effectively. The MoU represents a strategic alignment between public enforcement agencies and private logistics providers, enabling more timely interventions and reducing the interior gaps where evasion could occur.
Under this agreement, the Excise Department is empowered to inspect packages suspected of containing tax-evading items, a capability that aligns with the evolving nature of tax evasion driven by social media-driven purchases and the extensive use of private couriers. This represents a notable shift from the prior practice, in which private courier inspections required search warrants. The move to authorize inspections in certain circumstances aims to balance enforcement needs with civil liberties, ensuring that actions are targeted, justified, and legally sound. The collaboration is expected to enhance operational efficiency by allowing authorities to intercept potentially evaded goods earlier in the supply chain, thereby reducing leakage and protecting public revenues. It also underscores the importance of private-public partnerships in modern tax administration, where cross-sector cooperation can close loopholes that traditional controls might miss.
The implications for private courier firms are significant, as the MoU formalizes a role in facilitating compliance monitoring and enforcement. For businesses in the delivery sector, this could translate into more rigorous screening processes, training for staff on identifying illicit shipments, and clearer procedures for reporting or flagging suspicious parcels. While the arrangement imposes additional responsibilities on courier operators, it also offers an opportunity to demonstrate commitment to lawful commerce and to support government efforts to safeguard revenue streams. In the broader policy context, the cooperative framework signals a more integrated approach to tax enforcement—one that harnesses the reach and operational capabilities of private logistics networks in service of public finance objectives.
Detailed breakdown of seized goods: alcohol, tobacco, and other items
Alcohol seizures accounted for 8,396 shipments during the six-month period, reflecting a substantial focus of the excise enforcement program. The seized alcohol stock included 65,241 litres of domestic product and 14,348 litres of imported (foreign) alcohol. These numbers illustrate a dual strategy: curbing domestic production that evades taxation and intercepting imported alcohol that crosses borders without appropriate excise payments. The prominence of alcohol in seizures highlights the tax sensitivity of this commodity class, which often features higher tax differentials and a strong incentive for illicit distribution channels.
In the tobacco category, authorities confiscated 7,597 illegal tobacco shipments. The breakdown shows 298,002 packs of domestic tobacco and 2.12 million packs of foreign tobacco seized in the period. This distribution underscores the scale at which both domestic and imported tobacco products are used to meet demand through channels that circumvent taxation. The volume of tobacco seizures points to entrenched evasion networks that leverage both domestic production and cross-border sourcing to supply the illicit market, necessitating sustained enforcement attention across supply chains.
Other seized items expanded the scope of the department’s anti-evasion efforts beyond alcohol and tobacco. These included motorcycles and cars, signaling attempts to move high-value taxable assets through illicit channels. Additional categories comprised playing cards, perfume, cosmetics, beverages, oils and oil products, and batteries, each contributing to the overall enforcement picture and illustrating the broad reach of excise evasion schemes. While these items may not always carry high per-unit tax commitments comparable to alcohol and tobacco, their aggregate value and evasion potential remain meaningful for revenue protection and market fairness. The diversity of seized goods demonstrates the department’s comprehensive vigilance and readiness to intervene across a wide spectrum of taxable commodities.
The data also suggest a need for ongoing risk assessment to identify product categories and shipment patterns that consistently appear in evasion schemes. By analyzing trends in seizures—such as the proportion of domestic versus foreign sources, the volume of particular item types, and the distribution channels implicated—enforcement agencies can refine targeting strategies, allocate resources more efficiently, and heighten the deterrent effect of penalties and seizures. In this context, the collaboration with private couriers takes on added importance as a mechanism to monitor delivery routes and detect anomalies that might signal evasion attempts. The combined approach—robust inspections, cross-sector cooperation, and data-informed targeting—aims to optimize compliance, reduce illicit trade, and preserve public revenues in a dynamic marketplace.
Implications for stakeholders and the path forward
The intensified focus on excise tax evasion carries wide-ranging implications for various stakeholders, including sellers, buyers, courier companies, and legitimate retailers. For individuals and networks engaged in illicit trading, the clearer enforcement stance and the expanded inspection authority create greater risk of detection, seizure, and penalties, potentially elevating the cost of evasion and discouraging illicit activity. For legitimate businesses operating in alcohol, tobacco, and other regulated sectors, the crackdown signals stronger market discipline and a higher compliance bar, encouraging responsible supply chain management and accurate taxation practices. Courier firms participating in the MoU are positioned at the nexus of enforcement and logistics, with an increased responsibility to screen shipments and to cooperate with authorities in the interest of lawful commerce and revenue protection. This arrangement may drive investments in training, process improvements, and technology to better identify suspect shipments, while also presenting opportunities to demonstrate corporate social responsibility and adherence to regulatory standards.
From a public policy perspective, the results achieved thus far illustrate the effectiveness of combining stringent enforcement with strategic partnerships to deter evasion. The documented rise in seizures and the scale of fines contribute to a narrative of accountability and enforceable consequences for illicit traders. The ongoing initiative to inspect packages in collaboration with private couriers aligns with modern approaches to tax administration that leverage private sector capabilities to extend the reach of government oversight. As the policy evolves, it will be important to monitor effectiveness, assess unintended consequences (such as potential disruptions to legitimate commerce), and ensure transparency in how inspections are conducted and how revenues from fines are utilized in public finance or consumer protection initiatives.
Stakeholders should also anticipate a continued emphasis on cross-border and online channels, acknowledging that evasion now capitalizes on the speed and reach of digital platforms and international logistics. To remain compliant, businesses may need to invest in better record-keeping, supplier verification, and end-to-end tax compliance controls. For consumers, the crackdown signals that access to untaxed or under-taxed goods may become more constrained, particularly for regulated items such as alcohol and tobacco, which are subject to high excise duties and regulatory scrutiny. The policy direction projects a more transparent and accountable market environment, where evasion becomes increasingly costly and detection systems become more sophisticated as enforcement tools evolve.
Operational mechanics, warrants, and future policy evolution
The Public-facing policy documents emphasize a careful balance between effective enforcement and the protection of lawful commerce and individual rights. The revised inspection framework allows the Excise Department to examine private courier packages suspected of containing tax-evading goods, addressing a notable gap created by the growth of social media-driven purchases and private courier networks. The prior standard requiring search warrants for private courier inspections is set aside in specified circumstances where risk indicators suggest the likelihood of evasion, enabling more timely interventions. This operational shift aims to reduce the dwell time of illicit shipments in the supply chain and to strengthen deterrence by increasing the probability of catch and sanction.
Looking ahead, the department is likely to pursue continued enhancements in data analytics, interagency cooperation, and private-sector partnerships to sustain momentum against evasion. Possible future directions may include expanding the list of participating couriers, refining risk-scoring models for shipments, and increasing information sharing about suspicious activity. There may also be ongoing assessments of the legal framework governing inspections to ensure they remain proportionate, legally defensible, and aligned with evolving best practices in tax administration. As enforcement tools evolve, it will be important for policymakers to maintain transparency with the public, explain the rationale for inspection authorities, and clearly delineate the safeguards that protect legitimate commerce while preventing evasion.
Conclusion
The Excise Department’s intensified crackdown on excise tax evasion marks a decisive shift toward proactive enforcement, cross-border surveillance, and private-sector collaboration. With Deputy Finance Minister Paopoom Rojanasakul leading the policy direction, the department has committed to preventing illegal movement and sale of goods that dodge taxes, particularly through online platforms and private courier networks. The signing of the memorandum of understanding with Global Jet Express (Thailand) Co and KEX Express (Thailand) to inspect, seize, and confiscate tax-evading goods demonstrates a strategic move to close enforcement gaps created by modern logistics and digital commerce. In the first half of fiscal year 2025, the department recorded 18,254 seizures, up 13.7% year-on-year, and imposed approximately 2.7 billion baht in fines, with alcohol accounting for 46% of cases and tobacco 41.6%. The seizures also included significant volumes of domestic and foreign alcohol (65,241 litres and 14,348 litres, respectively) and domestic and foreign tobacco (298,002 packs and 2.12 million packs). Beyond these core commodities, authorities seized motorcycles, cars, playing cards, perfume, cosmetics, beverages, oils and oil products, and batteries, underscoring the breadth of evasion efforts.
The policy and its operational outcomes underscore a broader strategy to deter illicit activity, protect revenues, and promote compliance across supply chains while leveraging public-private partnerships to extend enforcement reach. As online commerce continues to grow and cross-border trade expands, the department’s approach—combining strict enforcement with strategic collaborations—positions it to respond to evolving evasion tactics, strengthen market integrity, and secure tax revenues for public programs. The ongoing focus on targeted inspections, enhanced collaboration with couriers, and robust data-driven oversight signals a sustained commitment to reforming the landscape of excise administration and ensuring a fair and transparent marketplace for all participants.
