Department mulls excise tax structure for cigarettes

[buksida]

The Excise Department is deliberating on the excise tax structure for cigarettes to strike a balance between public revenue, farmers' income, public health and tackling illegal cigarettes.

The present tobacco tax structure stipulates a 20% tax rate is applied to the retail price for packs costing up to 60 baht. If the retail price exceeds 60 baht per pack, a 40% tax rate is applied.

A flat tax rate of 40% was scheduled to be applied since October 2019, regardless of the retail price.

The Finance Ministry previously requested the cabinet extend the two-tier tobacco tax rate to the end of September this year. The extension has now been prolonged to September 2021.

There have also been requests from the Tobacco Authority of Thailand (TOAT), which monopolises domestic tobacco production, and tobacco farmers for the Excise Department to review the 40% flat tax rate as such a single-tier rate affects income earned by the TOAT and farmers.

The department is rushing to reach a conclusion on the excise tax structure for tobacco because the single-tier tax law has been deferred twice, said Lavaron Sangsnit, director-general of the Excise Department.

The excise tax structure on tobacco will take four main factors into account, said Mr Lavaron. They comprise revenue generation for the country, income of tobacco farmers, discouraging people from smoking and competing with illegal cigarette products.

https://www.bangkokpost.com/business/20 ... cigarettes

[HarryVardon]

Why don't they put 1000% tax on cigarettes? Why don't they enforce the no smoking laws (in Thailand it is forbidden to smoke within 50 meters of a public building, restaurant, bar, etc. but it is NEVER enforced!).

[Big Boy]

Because they need the income from the taxation. 1000% would be too restrictive/drive production and sales of crap cigarettes underground, resulting in having to accommodate many in prison.

[pharvey]

"Enforcing the law" in Thailand is somewhat of a joke at times, let's face it. China is no different and certainly whilst I was living there, laws on smoking were blatantly abused.

An increased taxation on cigarettes/tobacco would be a good thing IMO to fund the likes of public health etc. Increased taxes provide money, decrease health issues (people stopping smoking) and will (as mentioned) reduce smuggling.

In the UK, I believe tax on cigarettes stands at something like 80% and the average pack of 20 costing over 10 quid!! Admittedly, I used to be a heavy smoker, so am the worst of the worst to mouth off against smokers....

Alcohol abuse has it's obvious problems and Thailand are strict on this - why not tobacco?

[hhinner]

Because they need the income from the taxation. 1000% would be too restrictive/drive production and sales of crap cigarettes underground, resulting in having to accommodate many in prison.

Not to mention the direct income via the state tobacco monopoly.

[buksida]

New excise tax structure for cigs gets cabinet nod
The cabinet has approved the new excise tax structure for cigarettes, expected to come into effect this Friday, according to a Finance Ministry source.

The source said that all details will be disclosed by the Excise Department on Thursday at 4pm, after the new tax rate is published in the Royal Gazette.

At present, a 20% tax rate is applied to the retail price for cigarette packs costing up to 60 baht.

If the retail price exceeds 60 baht per pack, a 40% tax rate is applied.

The source said that the cabinet agreed to raise the tax rate from 20% to 25% including the 40% tax rate, together with an adjustment of the retail price which is at least 60 baht.

The levy in terms of volume will be raised to 1.25 baht per cigarette from 1.20 baht, with the retail price expected to rise by 6-8 baht per pack.

https://www.bangkokpost.com/thailand/ge ... abinet-nod

[HarryVardon]

Any kind of tax hike on cigarettes is a very good news, the higher the better. Unless, of course, the tobacco industry comes up with cigarettes that don't smell and also don't make smokers smell.

[lindosfan1]

I am now a non smoker, gave up 3 years ago. I can now smell a cigarette from 10 yards away in the fresh air. I wish I had done it 50 years ago. The tax should be higher if the income goes to fund the hospitals in Thailand.

[handdrummer]

I am now a non smoker, gave up 3 years ago. I can now smell a cigarette from 10 yards away in the fresh air. I wish I had done it 50 years ago. The tax should be higher if the income goes to fund the hospitals in Thailand.

If it's a tax to deter people from harming themselves and others, then alcohol, drivers licences, sugar, salt and all additives to food should be taxed and that's just for starters.

In the meantime, I reserve the right to destroy my life any way I choose but I have no right to destroy others lives. Is a puzzlement.

[buksida]

Alcohol and sugar products already are heavily taxed in Thailand.

Social media should really be taxed if you're going down that path.