State tobacco to suffer first time loss in history

[webfact]

State tobacco to suffer first time loss in history

By Thai PBS

 

 

Thailand Tobacco Monopoly (TTM) says it is expected to suffer it’s first time loss in history of a tremendous amount of 5 billion baht this year from the government’s recent excise tax increase.

 

TTM managing director Daonoi Suthinipaphan said the expected huge loss stemmed from the new excise tax law which became effective on September 16 last year.

 

She said the new excise tax resulted in higher retail prices of cigarettes produced by TTM by 3-20 baht per pack.

 

Full story: http://englishnews.thaipbs.or.th/state-tobacco-suffer-first-time-loss-history/

 

-- © Copyright Thai PBS 2018-03-05

[petermik]

So that,s why Ecigs have been outlawed then...........

[worgeordie]

Profits gone up in smoke then, also drop in profits could

have been the ban on smoking at the beaches ,but anything

to reduce consumption is a good thing,its a vile habit that

does the users no good at all.

 

regards worgeordie

[Ossy]

12 minutes ago, webfact said:

She said the new excise tax resulted in higher retail prices of cigarettes produced by TTM by 3-20 baht per pack.

She also failed to thank the government for the excise tax increase, on its massive health as well as revenue benefits. Such a one-track mind that I'm sure will be happy again, once TTM have cleared a bit of dead wood from the marketing department.

[transam]

10 minutes ago, worgeordie said:

Profits gone up in smoke then, also drop in profits could

have been the ban on smoking at the beaches ,but anything

to reduce consumption is a good thing,its a vile habit that

does the users no good at all.

 

regards worgeordie

I can think of many "vile" habits but having a ciggy in my garden isn't one of them...

[JOC]

The 2 percent excise tax increase will earn the Excise Department an addition of between 4,200-4,600 million baht from its annual excise tax revenue amounting to about 200 billion baht.......Quote from Thai PBS

So the state monopoly are losing 5 billion Baht and the Exercise Department is pocketing 4.6 billion Baht.....

I will refrain from commenting on the accounting method  used in the OP....

[robblok]

12 minutes ago, JOC said:

The 2 percent excise tax increase will earn the Excise Department an addition of between 4,200-4,600 million baht from its annual excise tax revenue amounting to about 200 billion baht.......Quote from Thai PBS

So the state monopoly are losing 5 billion Baht and the Exercise Department is pocketing 4.6 billion Baht.....

I will refrain from commenting on the accounting method  used in the OP....

Its a bit strange but remember they get excise from other tobacco companies too.  I like to see some more figures because with the limited amount of data given we can't really draw any conclusions. We don't know if its because of loss of turnover or other costs increasing. Anyway 5 billion baht is a lot. 

 

But its a safe bet that the 2% increase your talking about is not the reason for the 5 billion baht loss. There are probably other factors at play like top heavy management ect.

[ezzra]

As far as i'm concerned, i wish the the bankrupt and sut shop for ever, their crocodile

tears are just that, they're a dying dinosaur and a fat one at that, made billions and billions

on the backs of people health, no sympathy for them at all....

[Cadbury]

52 minutes ago, webfact said:

Thailand Tobacco Monopoly (TTM) says it is expected to suffer it’s first time loss in history of a tremendous amount of 5 billion baht this year from the government’s recent excise tax increase.

Phones will sure to be running hot between department heavies, ministers, political generals and "connections" within the tobacco industry.

Shouldn't be too long before a government subsidy is granted to ensure continuity of employment for those working within the industry. Not to mention keeping the wallets and handbags of the elite full to overflowing.

[harada]

Wait for it, research now shows that e cigarettes are good for you, and will shortly be available in Thailand from TTM only. 

[dick dasterdly]

It's v. odd, but Camel and Winston are now far cheaper than L&M.

 

Makes no sense to me, but I hope another poster can provide the answer.

[mtls2005]

Classic State Enterprise Planning inefficiencies.

 

Just when smoking rates start to decrease TTM invests in a new, massive manufacturing facility in Ayuthaya.

 

 

[Thian]

1 hour ago, JOC said:

The 2 percent excise tax increase will earn the Excise Department an addition of between 4,200-4,600 million baht from its annual excise tax revenue amounting to about 200 billion baht.......Quote from Thai PBS

So the state monopoly are losing 5 billion Baht and the Exercise Department is pocketing 4.6 billion Baht.....

I will refrain from commenting on the accounting method  used in the OP....

Ciggies went from 60 baht to 100 in last 2 years or so...marlboro from 80 to 120...that's much more than 2%

[johncat1]

The name State Tobacco infers is is owned or controlled by the government. If so it is the government's fault for a falling demand for cigarettes. The government prohibits advertising of tobacco products and even hides them from display in 7-11 shops.   How do they expect people to buy the product if it is never advertised or displayed ?  Cigarette smoking by Actors is blurred out  which is very childish,

Although I am a non smoker I believe in freedom of choice 

[RichardColeman]

Don;t see how they have a loss - Thai kids around here smoke like chimneys as they shoot by on their parents motorbikes !

Edited March 5, 2018 by RichardColeman

[anon789561]

missed out on plenty of revenue from me since i got my e-cig 2 years ago. can hardly even smoke now. although i do if on a night out. the house and clothes don't stink, they give me a sore throat and i think my lungs are a bit better for it too. also saved lots of money. so the tobacco boys can go do one with their profits as far as i'm concerned. 555

[Ossy]

1 hour ago, transam said:

I can think of many "vile" habits but having a ciggy in my garden isn't one of them...

A pipe man for half a century, there's no way I'm changing now. I buy my backy - grown next to the Mekong, near Nong Khai, costing B300/kilo and no excise rise, yet - from a street-side dealer and it costs me about 3 baht an evening for my bit of vileness. No, I wasn't meaning you, dear . . . you concentrate on your darning!

[garyk]

I haven't smoked in 30 years. Every time I pass someone smoking they still smell good.

Never put another one in my mouth though. Nasty habit.

[StefanBBK]

If TTM would like to make some money, the legalize and tax smoke alternatives and distribute them through TTM.   I have not bought a pack of cigarettes here since ages. Switched to Iqos and feel much better for it. Those sticks are much more expensive than cigarettes.

Edited March 5, 2018 by StefanBBK

[eliotness]

Most of the Thais in my village buy loose tobacco and roll their own. Only 5 baht a packet with the equivalent of 20 to 25 cigs.  That's a huge reduction in profit for TTM.

Also many who do have packets seem to be smoking "imported" brands. I suspect trade in illegal cigs is growing quite fast.  Happens in the UK, so why not Thailand !

[toofarnorth]

2 hours ago, Thian said:

Ciggies went from 60 baht to 100 in last 2 years or so...marlboro from 80 to 120...that's much more than 2%

When I arrived here in 2005 Wonder were 38B , now 90.  Good job I live near the northern border , cigs my wife brings back are 15B and better than Thai ones. Which I enjoy in my garden , not indoors nor where folk are eating.

[Thian]

2 hours ago, johncat1 said:

The name State Tobacco infers is is owned or controlled by the government. If so it is the government's fault for a falling demand for cigarettes. The government prohibits advertising of tobacco products and even hides them from display in 7-11 shops.   How do they expect people to buy the product if it is never advertised or displayed ?  Cigarette smoking by Actors is blurred out  which is very childish,

Although I am a non smoker I believe in freedom of choice 

A package of rolling tobacco costs 10 baht iirc...it makes 60 cigarettes i guess.

And on the markets i see tobacco for sale, 60 baht a kg....

 

So it's not strange the Thai stopped smoking these expensive cigarettes which are not even the same quality as the ones from overseas.

 

 

[Thian]

2 hours ago, Father Fintan Stack said:

Better be careful, they will be out in force at the airports extorting smokers arriving from the Middle East with sleeves of 200 smokes.

 

Couldn't happen to a nicer bunch. 

200 is legal, those arabs can bring unlimited cigarettes to their homecountry, on dubai airport you can see them with 10 huge bags full out of the taxfree shop.

 

The law is 200 cigarettes, doesn't say anything about the size of them...why don't they make/sell bigger cigarettes?

 

Also i bet that King Power is doing very good business since they increased the tax on ciggies. You can even buy there when you arrive on a Thai airport and bring them into the country.

[korkenzieher]

May be off topic a bit - but in the same excise revisions, wine and other alcohol took a hit too. Anyone seen figures for trading in those? Wine must have taken a huge hit.

[Sapporillo]

2 hours ago, johncat1 said:

The name State Tobacco infers is is owned or controlled by the government. If so it is the government's fault for a falling demand for cigarettes. The government prohibits advertising of tobacco products and even hides them from display in 7-11 shops.   How do they expect people to buy the product if it is never advertised or displayed ?  Cigarette smoking by Actors is blurred out  which is very childish,

Although I am a non smoker I believe in freedom of choice 

Wise words, rarely spoken. All over the world, governments can't make up their minds: They invest massively in anti-smoke campaigns, outlaw advertising and do whatever they can to keep their citizens from smoking, yet it is a 100% legal product, and most countries subsidise their tobacco farmers, and sometimes the entire tobacco industry (if they have one). This is just crazy...

 

 

[Oziex1]

Is it the tax or cheap Chinese tobacco coming over illegally. 

[CGW]

They should sell of the land where there head quarters is, must be worth more than the British embassy by far and very under utilized! Nice area to go for a walk in Bangkok.

Alternatively they should ban the sale of imported cigarettes - again, remember the early days? they weren't called a monopoly for nothing, no imports allowed, until they were eventually forced into letting competition into the country, be good to see the guys with the couple of packs of Marlboro wandering the streets selling contraband again!

[IAMHERE]

Time to legalize Marijuana and recoup that loss, perhaps?

[dinsdale]

8 hours ago, Thian said:

Ciggies went from 60 baht to 100 in last 2 years or so...marlboro from 80 to 120...that's much more than 2%

Some went down. I have absolutely no idea what happened. Camel, Winston made in the Philippines now Bt60.  Camel I think were Bt90/95. SMS etc went up. Something went on that we're not being told and I think this loss may just be on paper with the fat cats at TTM pocketing heaps. 

Just a thought.

[The manic]

9 hours ago, transam said:

I can think of many "vile" habits but having a ciggy in my garden isn't one of them...

Glad I don't have to suffer you as aneighbour... or my kids... Smoking around children is a form of abuse.  Please smoke in your house with windows closed!