Tobacco Monopoly asks for rethink on Thailand’s excise tax structure

 

BANGKOK, 28th November 2017 (NNT) - The Thailand Tobacco Monopoly is asking the government to rethink the country’s excise tax structure. 

The chair of the committee tasked to inspect Thailand Tobacco Monopoly, Mr. Anya Khanthavit, said on Monday that the enactment of the Excise Tax Act B.E. 2560 was made in good faith and with the intention of collecting tax that will be invested in the improvement of the country. 

Despite its impact on the cost of production, which led to higher prices, Mr. Anya said that the upside of the law has been a decline in the number of smokers. 

However, he noted that some unscrupulous traders have used legal loopholes to lower cigarette prices — an action that has adversely affected other merchants and caused unfair trade practices. 

Meanwhile, the Managing Director of Thailand Tobacco Monopoly, Ms. Daonoi Suttiniphapunt, said today that the impact of the new law has visibly affected the company because importers of foreign cigarettes have made use of some loopholes in the law to cut their prices. 

Ms. Danoi said that Thailand Tobacco Monopoly’s production will likely fall to 17 billion units this year from 28 billion units produced last year while its revenue is expected to drop to 43.84 billion baht from over 56 billion baht. 

Therefore, he is urging all related agencies to reconsider the excise tax structure to ensure level ground on which to compete fairly.

 

-- nnt 2017-11-28

" Thailand Tobacco Monopoly’s production will likely fall to 17 billion units this year from 28 billion units produced last year "

 

Clearly Excise Tax Act B.E. 2560 was a smart move by the government !

1 hour ago, webfact said:

the impact of the new law has visibly affected the company because importers of foreign cigarettes have made use of some loopholes in the law to cut their prices. 

There's a competition here as to whom will be allowed to poison

the people more cheaply in their pursuite to get more money out

of people's misery, Oh the irony.....

Perhaps they might also reconsider their policy on vaping ?

 

The new product & nicotine-delivery system won't go away, just because it continues to be banned, because it doesn't currently deliver tax-revenues to the government !

 

Time to join the future, rather than keep on pretending, that it hasn't arrived !  Thailand risks becoming out-of-step with other countries.

 

Taxing tobacco itself can be problematic, because if it's too high/out-of-line, then that encourages smuggling across Thailand's borders, which generates greater-profits for criminals but no taxes for the country.