Tobacco trade group urges delay in cigarette tax increase

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Tobacco trade group urges delay in cigarette tax increase

By The Nation

 

Following the discovery of rampant use of contraband cigarettes in the seven lower southern provinces, the Thai Tobacco Trade Association on Wednesday called on the government to delay the next cigarette tax hike, scheduled for October.
 

Association director Waraporn Namat noted that a Nida Poll it commissioned found most tobacco retailers in the seven provinces believed cigarettes produced in the country illegally or smuggled in were eating into their revenues.

 

Waraporn said 1,157 shop owners in Trang, Phatthalung, Satun, Songkhla, Yala, Pattani and Narathiwat were surveyed between March 12 and 30.

 

Half of them acknowledged that smuggled cigarettes were widely available in their provinces, with Songkhla, Satun and Narathiwat seeing the most smuggled smokes.

 

Many warned that another tax hike on legal cigarettes would prompt more smokers to turn to the contraband variety.

 

Waraporn said last September’s excise tax increase boosted the retail price of a packet of cigarettes to Bt60, while a smuggled packet could be purchased for just Bt10.

 

The association learned that the Songkhla Provincial Administrative Organisation was able to collect only Bt7.2 million in taxes on cigarette sales in the first four months of this year, down from Bt12.2 million during the same period last year.

 

Waraporn said the 41-per-cent drop proved that, because of contraband, the legal trade suffers when taxes rise.

 

She said if the Finance Ministry raises taxes again in October as planned, the retail price could rise to Bt70 or Bt80 and the market could be flooded with more contraband cigarettes.

 

Source: http://www.nationmultimedia.com/detail/business/30345522

 

-- © Copyright The Nation 2018-05-16

[Samui Bodoh]

Hmm..

 

Isn't a very large percentage of the Thai army stationed in those provinces running anti-insurgency campaigns? And if a very large part of the Thai army is stationed in those provinces running an anti-insurgency campaign, how is it possible that there are soooooooo many smuggled cigarettes? If you are running an anti-insurgency campaign, you are looking for abnormalities in goods (weapons and the like); how is it possible to not see the smuggled cigarettes?

 

Double hmm...

 

I wonder who is smuggling the cigarettes? I wonder how they manage to avoid the Thai army as they smuggle?

 

Triple hmm..

 

I guess that we will never know...

 

 

[Bob12345]

I asked a local seller of cigarettes here in phuket if there are many smuggled cigarettes available here on the island and he said no. But when i asked him again, after pointing out that a negative answer might lead to an increase in taxes resulting in higher prices and less sales, he said there are many smuggled cigarettes here on the market. So there you have it.

 

Tomorrow i will ask bar owners if alcohol causes many problem and therefore bars should be closed. Curious what they will answer.

[sammieuk1]

Great idea to jack up the price like the UK'S 10 quid per pack then every one go's smuggling. Go vape go

[Sir Dude]

The constant rise in taxes does nothing to help the government's tax revenues as it encourages contraband and smuggling, if anything it ends up losing money. Many people that would not consider breaking the law if prices are reasonable get sucked into it through this. However, I can't help thinking that the continual rise of price on things that have the 'sin tax' label are more down to the puritanical junta and Killjoy brigade on a fun/enjoyment eradication mission as opposed to raising more revenue. 

[swissbie]

4 hours ago, Samui Bodoh said:

Hmm..

 

Isn't a very large percentage of the Thai army stationed in those provinces running anti-insurgency campaigns? And if a very large part of the Thai army is stationed in those provinces running an anti-insurgency campaign, how is it possible that there are soooooooo many smuggled cigarettes? If you are running an anti-insurgency campaign, you are looking for abnormalities in goods (weapons and the like); how is it possible to not see the smuggled cigarettes?

 

Double hmm...

 

I wonder who is smuggling the cigarettes? I wonder how they manage to avoid the Thai army as they smuggle?

 

Triple hmm..

 

I guess that we will never know...

 

 

It's about economics, nothing to do with fighting the insurgency. Besides, most soldiers maybe couldn't care less about lung cancer as long as they are stationed in the deep south..

[blackcab]

4 hours ago, Samui Bodoh said:

I wonder who is smuggling the cigarettes? I wonder how they manage to avoid the Thai army as they smuggle?

 

Probably something to do with having a 650km long sea and land border.