Tobacco tax ‘too little’ to finance public healthcare

[webfact]

Tobacco tax ‘too little’ to finance public healthcare

By THE NATION

 

File photo: Tobacco factory

 

Experts say an extra bt2 per cigarette packet won’t resolve budget challenges of universal scheme

 

THE Finance Ministry’s plan to collect an extra Bt2 from every cigarette packet sold to fund the universal healthcare scheme has been met with scepticism by public-health experts. 

 

The universal healthcare scheme offers most types of medical services to about 48 million Thais for free with an annual |budget of more than Bt160 billion a year. But expenditure is expected to rise steeply as the scheme, touted as one of the world’s best, seeks to expand the benefits to people in the face of increasingly advanced medical technologies and the fact that Thailand is becoming an aged society. 

 

The plan to levy an extra Bt2 per cigarette packet is expected to raise an additional Bt3 billion per year for the scheme.

 

“That’s too little to deal with the actual amount of money the scheme needs,” Asst Professor Dr Thira Woratanarat, who teaches preventive and social medicine at Chulalongkorn University’s Faculty of Medicine, said yesterday.

 

He was speaking in response to reports that the Cabinet is expected to consider the plan today. 

 

According to Thira, the Organisation for Economic Cooperation and Development (OECD), a grouping of developed countries, has estimated that its members’ health expenditure will rise by between nine and 12 per cent every year. 

 

“Although Thailand is not an OECD member, our medical standards are on par with the OECD,” Thira said, “So, the OECD forecast could also be an indicator of the expenditure Thailand will have to cope with.”

 

He pointed out that non-communicable diseases such as diabetes, blood-pressure disorders and heart conditions were now common in Thailand, just like in developed nations. 

 

“These kinds of health problems cost a lot of money in terms of treatments,” Thira said. 

 

He, therefore, did not think that raising cigarette prices by Bt2 per packet could be a real, sustainable solution to maintain the universal healthcare scheme. 

 

“With such a solution, the scheme will run into financial difficulties,” the medical lecturer commented. 

 

Thira said concerned parties had discussed various other possible ways to make the scheme financially sustainable.

 

“For example, we have talked about providing basic treatments to all and charging more for those who want more medical services or benefits,” he said. “But this idea has faced opposition from non-governmental organisations, who feel it would widen gaps in Thai society.”

 

He said another idea was to raise value-added tax by 1 per cent for the cause. 

 

“The government has to date not responded to this idea,” he said. 

 

Thira said some thinkers believe people with unhealthy behaviour should be required to pay extra for health services. “But I disagree with this idea because it’s hard to identify which behaviour really harms one’s health. It’s like victim-blaming,” he said. 

 

According to Thira, there has also been a suggestion to collect more taxes from unhealthy food such as junk food and instant noodles. But that move would likely have a widespread impact.

 

As for the additional collection of sin taxes for the universal healthcare scheme, Thira said, “It’s possible. We have discussed it. But the amount of sin taxes is tiny when compared with the scheme’s total expenditure.” Stiff opposition is also being encountered from tobacco growers.

 

“The plan will add salt to the wounds of farmers,” Kris Phathong, who heads the Chiang Mai Tobacco Farmers and Traders Association, said yesterday as he submitted a letter to protest against the extra Bt2-per-cigarette-packet plan.

 

According to Kris, the Tobacco Authority of Thailand has already cut tobacco-leaf purchases by about half this year after taxes on cigarette were increased last year. 

 

“If the government is going to collect Bt2 more tax on every cigarette packet, 50,000 tobacco farmers across the country will be doomed,” he said. 

 

Tobacco Authority of Thailand governor Daonoi Suthiniphapan said her agency’s profits had fallen sharply from Bt9 billion in 2017 to less than Bt1 billion this year. 

 

“Our operations will affect tobacco growers,” she said. 

 

Earlier, the Thailand Development Research Institute (TDRI) suggested that the government consider scrapping all healthcare schemes and operate the universal healthcare scheme for all Thais. To fund this nationwide scheme, the TDRI recommended that various types of taxes, including withholding taxes, make contributions. 

 

Source: http://www.nationmultimedia.com/detail/business/30355588

 

-- © Copyright The Nation 2018-10-02

[Thaiwrath]

17 minutes ago, webfact said:

Tobacco Authority of Thailand governor Daonoi Suthiniphapan said her agency’s profits had fallen sharply from Bt9 billion in 2017 to less than Bt1 billion this year. 

 

“Our operations will affect tobacco growers,” she said. 

 

The well being of the tobacco growers is of little concern to the Tobacco Authority of Thailand.

The sharp drop of profits is their main concern, unfortunately !

[Samui Bodoh]

"...Tobacco tax ‘too little’ to finance public healthcare..."

 

Well, if it is too little, then find alternative means of boosting funding. Might I suggest that step one is to NOT buy un-needed submarines? Step two to cut a bloated military budget which has doubled in the last decade or so while the threat has not grown an inch? Step three...

 

"...For example, we have talked about providing basic treatments to all and charging more for those who want more medical services or benefits,” he said. “But this idea has faced opposition from non-governmental organisations, who feel it would widen gaps in Thai society..."

 

It would widen gaps in society in a country which already has one of the widest income gaps in the world. As there is HUGE disparity in land-ownership in Thailand, why not implement a land tax to fund the scheme and preserve the universal aspect to it?

 

"...Earlier, the Thailand Development Research Institute (TDRI) suggested that the government consider scrapping all healthcare schemes and operate the universal healthcare scheme for all Thais. To fund this nationwide scheme, the TDRI recommended that various types of taxes, including withholding taxes, make contributions..." 

 

This is the best idea of all; global research and experience demonstrates that the best public health scheme is one where all people are treated as equals, with all benefits shared. The benefits speak for themselves, but it would have an added bonus of removing health care as a perk given to the bureaucracy and force all Thais to use the same system. When EVERYONE uses the same scheme, then there is impetus to make the scheme better; when some (especially in government) have their own, special scheme, then there is little impetus to make the universal scheme better, but rather there is always a push to improve the special, government-exclusive scheme.

 

Governments exist as there are some things that are better done collectively as a society rather than alone or by one's immediate family, and health care is the prime example of this. That said, it requires a society to treat all equally as illness does not discriminate. 

 

Does Thailand have the ability and/or desire to treat all its citizens equally? I think that remains a very open question...

 

 

[wirat69]

If I have to pay an additional 2 baht per pack (20 baht per week) do I get a subsidised visit to a Government Hospital also???

[quadperfect]

Just what austalia did and tax it a arm and a leg. Problem solved

[Lupatria]

Wonder how much of the tobacco tax is actually arriving in the health care coffers.

[overherebc]

Make it 500 baht a packet and I will have a very good reason to quit.

[overherebc]

2 minutes ago, The manic said:

You and 90% of smokers in the UK. Smoking is dead here effectively.  A few addicts,  weak minded people and uneducated lower social groups continue but within two decades it will be unheard off. 

As long as you're not putting me in the lower social, uneducated addict bracket I'ĺl agree. ????

As Mr Secombe said in the 60's, I am well known in concentric circles.

[BestB]

Governments all around the world love to blame smoking for healthcare deficits and to raise taxes, i seriuosly doubt it is smokers who are the burden.

every packet smoker buys , they pay huge tax , shop selling  pays tax , wholesaler pays tax , company pays tax.

 

I use to smoke, price in Oz $28 per packet , i smoked 2 per day . $26 of it is tax . So I alone paid $20000 in tax per year and smoked for 25 years. 

 

Surely $500 000 over 25 years would cover my healthcare should I get sick from being a smoker

[fforest1]

8 minutes ago, The manic said:

You and 90% of smokers in the UK. Smoking is dead here effectively.  A few addicts,  weak minded people and uneducated lower social groups continue but within two decades it will be unheard off. 

 

Yea all the smart smokers moved to Thailand...Thailand is a smoking Paradise....I love smoking in restaurants and bars any time I want... 

[sebastion]

That's a sharp drop in profits.
My suspicions might be right , they are pushing for weed in Thailand to make up for that huge loss.

Fine by me.

Sent from my EVA-L19 using Tapatalk

[canopus1969]

18 minutes ago, fforest1 said:

 

Yea all the smart smokers moved to Thailand...Thailand is a smoking Paradise....I love smoking in restaurants and bars any time I want... 

 

'Smart' and 'Smokers' in the same sentence is an oxymoron 

[IAMHERE]

1 hour ago, overherebc said:

Make it 500 baht a packet and I will have a very good reason to quit.

That is what got me to quit. Michigan (state in America) raised its' taxes in 1987 and I just didn't want to keep paying the tax. 

[smedly]

2 hours ago, Lupatria said:

Wonder how much of the tobacco tax is actually arriving in the health care coffers.

considering a recent report claimed that baht150billion was being thieved through corruption perhaps they are looking in the wrong place

 

Also buying 3 Subs (that Thailand needs like a fart in a spacesuit) would have better spent elsware  

[nausea]

It's a bit of a cheek anyway expecting smokers to finance everyone else's healthcare.

[Ceruhe]

Why don't they create a committee to boost the population of smokers so more revenue can generated by it....simply ignore the consequences of this stupidity as usual. Will work out, 100%.

[xtrnuno41]

Thai government, as many other governments make lots of money on for instance the tax on cigarettes.  

Governments rule and just take your money, to spend on stupid things. Like U-boats in Thailand.

 

Thailand could be making lots of money on fines in traffic. All those people without helmet or driving license or driving wrong side of road or driving with 3 people or more on motorbikes or driving drunk or racing. Lots of opportunities, therefor people will have less accidents, so they dont need medical care. Win WIN situation.

Fines controlled in computer systems, not by cops directly.  

[Srikcir]

4 minutes ago, xtrnuno41 said:

Thai government, as many other governments make lots of money on for instance the tax on cigarettes. 

Just to be clear, Thailand has a government cigarette monopoly and can manipulate prices of competing foreign products with import tariffs and legislation/regulations such as burdensome packaging requirements.

Edited October 2, 2018 by Srikcir
packaging added

[xtrnuno41]

6 minutes ago, Srikcir said:

Just to be clear, Thailand has a government cigarette monopoly and can manipulate prices of competing foreign products with import tariffs and legislation/regulations such as burdensome packaging requirements.

85% in this official document   http://apps.searo.who.int/PDS_DOCS/B4732.pdf

[CeeGee]

Legalise e cigs, then tax them.Less health issues,government still gets tax money.

 

Sorry forgot Government owns tobacco company not e cig company

[dickjones2018]

why not make clear :

1- you smoke, ok, no health insurance or no lung transplants, etc...

pretty easy to spot a smoker, even they lie

2- you drink heavely : no health insurance or no liver transplant

3- you are fat as hell from an unhealthy diet... etc...

[baboon]

32 minutes ago, dickjones2018 said:

why not make clear :

1- you smoke, ok, no health insurance or no lung transplants, etc...

pretty easy to spot a smoker, even they lie

2- you drink heavely : no health insurance or no liver transplant

3- you are fat as hell from an unhealthy diet... etc...

And where do you draw the line, given literally everything has a cause?

 

Great, do what they do in the west: Complain smoking is causing early deaths and tax the bejesus out of it. Then in a few years after loads of people have quit, complain we are all living too long and costing the state a fortune. You can't win...

[BEVUP]

10 hours ago, quadperfect said:

Just what austalia did and tax it a arm and a leg. Problem solved

YEH It's like $30 a pack of 30's or more 

There still working out why Australians need more money for the cost of living 

 

& that's not because of the taxes on smokes alone 

[BEVUP]

1 hour ago, baboon said:

And where do you draw the line, given literally everything has a cause?

 

Great, do what they do in the west: Complain smoking is causing early deaths and tax the bejesus out of it. Then in a few years after loads of people have quit, complain we are all living too long and costing the state a fortune. You can't win...

Also the reason they charge us for Medicare & force us to take out basic hospital cover on top of taxes

 

[The manic]

2 hours ago, dickjones2018 said:

why not make clear :

1- you smoke, ok, no health insurance or no lung transplants, etc...

pretty easy to spot a smoker, even they lie

2- you drink heavely : no health insurance or no liver transplant

3- you are fat as hell from an unhealthy diet... etc...

Smoking is the worst, the most damaging and totally unessecary.  Obesity is being addressed right now. One of the problems with smoking is the damage to people around them. Service staff are an example of this. 

[Burma Bill]

As far as I am concerned they can tax cigarettes out of existence - disgusting habit. That is why I very rarely use farang bars because they are usually full of ex-pats sat propping up the bar with fags in their mouths all breathing in from the same "blue haze" of nicotine.

[swissbie]

11 hours ago, quadperfect said:

Just what austalia did and tax it a arm and a leg. Problem solved

You forgot just one little detail: Australia doesn't have any land borders. Thailands borders to the south, west, north, northeast and east are very porous and there is a huge influx of cheap and untaxed cigarettes, american brands (untaxed) through Klong Toey too. You can't beat the market.

[mommysboy]

If more people were encouraged to smoke then that would raise extra funds!  How about a fat tax?  Simply weigh the population every 3 months and slap a bill on an offender's forehead.  Drunk tax anyone?  A BP tax could be particularly lucrative as the sheer anxiety of it could ensure 170/100- luvverly!

 

On the other hand, Thailand could simply develop a PAYE tax system like every other country. 

[metisdead]

Off topic posts and the replies have been removed. 

[mommysboy]

1 hour ago, The manic said:

Smoking is the worst, the most damaging and totally unessecary.  Obesity is being addressed right now. One of the problems with smoking is the damage to people around them. Service staff are an example of this. 

 

Oh yeah!