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Thailand Tobacco Monopoly cries foul over unfair excise tax on local cigarettes


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TTM cries foul over unfair excise tax on local cigarettes

By Thai PBS

 

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Thailand Tobacco Monopoly (TTM) is asking the government to revise its excise tax on local tobacco saying it could lead to the dominance of foreign brands in the local market.

 

It claimed that within a month after the new excise tax law put into force on Sept 16, it has lost substantial market share to foreign tobacco.

 

The call was revealed at a press conference on Nov 27 held by the management of the TTM, a state enterprise under the supervision of the Ministry of Finance, which operates in the cigarette production and distribution business, to address impact on local tobacco by the recent taxation.

 

Full story: http://englishnews.thaipbs.or.th/ttm-cries-foul-unfair-excise-tax-local-cigarettes/

 
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-- © Copyright Thai PBS 2017-11-29
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TTM must have been instrumental in formulating the new exise tax law, also they never criticized it before introduction.

So it looks like now they are surprised by how the market reacted. A TTM brand like LM goes from 87 to 99 Bt, but a Camel goes from wherever to 60Bt, makes the choice pretty easy for most smokers, quite predictable really.

Maybe it wasn't the smartest idea to base a tax on the retail price, which is influenced by tax, which is influenced ... .

Sent from my ASUS_X008D using Thailand Forum - Thaivisa mobile app

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3 hours ago, jonclark said:

From the TTM report comes one of the most brilliantly asinine comments ever:

 

"...with a greater entry of foreign tobaccos which poses an increased danger for smokers who stand a greater chance of puffing on uncured tobaccos"

 

 

 

I fully agree, it's a thoroughly stupid comment. It implies there are foreign cigarette brands that use "uncured" tobacco. But in fact, there are no "uncured" tobaccos in any commercially sold cigarettes, whether local or foreign. EVERY tobacco type MUST be cured before it can be smoked at all.

 

  

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2 hours ago, longtom said:

TTM must have been instrumental in formulating the new exise tax law, also they never criticized it before introduction.

So it looks like now they are surprised by how the market reacted. A TTM brand like LM goes from 87 to 99 Bt, but a Camel goes from wherever to 60Bt, makes the choice pretty easy for most smokers, quite predictable really.

Maybe it wasn't the smartest idea to base a tax on the retail price, which is influenced by tax, which is influenced ... .

Sent from my ASUS_X008D using Thailand Forum - Thaivisa mobile app

 

I dont think you really understand what TTM is.  LM has nothing to do with them..
 

 

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There should be no state sanctioned monopolies.  This concept of governments and corporations working together to dominate a market really starts to push the boundaries of classic fascism.  

"Fascism - is a form of radical authoritarian nationalism, characterized by dictatorial power, forcible suppression of opposition and control of industry and commerce."  

-- Wikipedia.

 

If is looks like a duck, swims like a duck, and quacks like a duck....then? 
It would be much better if the government opened all industries to operated within the framework of free markets with free market competition.  The weakest business fail, the strongest prosper, and consumers win.

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Thailand Tobacco Monopoly (TTM) 

as apposed to Thailand Tobacco company speaks volumes...

welcome to free international trade & competition

Thailand will have a lot to learn when it enters ASEAN for real or wants to trade with the global market

get used to it Thailand you cannot expect to freeze out the rest of the world forever to protect your own interests

borders are opening up, either get up to date or die like the dinosaurs! 

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I only smoke tax-free ciggies bought abroad by me or one of my thai friends. One is stewardess and brings me a lot.

 

They are cheaper but also taste better and don't burn so fast.

 

The thai farmers don't care though, they sell their tobacco on the markets now, 70 baht a kg.

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I am going to guess that a leveling of the playing field caused a loss of market

share for this monopoly. I don't smoke, and feel sorry for those addicted to

the weed. No sympathy here. 

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Too bad, how sad, never mind.

 

Also raise the taxes on the imported product so they don't have a price advantage in the local market place. A win win scenario? :whistling: 

 

Government gets more money and their "manufacturer" is not disadvantaged. :coffee1:

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I think the fall in sales of domestic-brands will also have implications, for the farmers in tobacco-growing areas like mine, it's one reason why the Triangle was/is so Golden ! :smile:

 

I foresee another change in the tax-regime happening very-rapidly.

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