Activists give thumbs up to tobacco tax move

[webfact]

Activists give thumbs up to tobacco tax move

By THE NATION

 

File photo

 

Move seen as step in right direction to fund public healthcare as well as reduce the number of smokers.

 

PRIME MINISTER Prayut Chan-o-cha yesterday said that a plan to collect an extra Bt2 from every cigarette packet sold was in the process of consideration, even as anti-smoking and health advocates backed the idea of the additional money being used to fund the universal healthcare scheme.

 

 A source at the Public Health Ministry said the proposal required cooperation and approval from the Finance Ministry before it could be forwarded to the Cabinet for approval. Prayut told reporters yesterday that the proposal was still in the process of consideration.

 

Action on Smoking and Health Foundation Thailand (ASH Thailand) executive secretary, Dr Prakit Vathesatogkit, praised the tax hike, as it would effectively reduce the number of smokers, especially low-income people.

 

He said if the cigarette tax were to be 10 per cent higher, the number of adult smokers would be lower by 4 per cent while the number of youthful smokers would go down by 8-10 per cent. 

 

Asked if this move would be appropriate, as the latest tax hike was implemented only last year, Prakit said various countries hiked cigarette tax at least once a year. He gave the example of Australia where the tax was hiked every six months and where the cigarette price was now as high as A$30 dollars (Bt700) per packet. 

 

Thailand has hiked the tax 12 times since 1993, about once every two years, he said.

 

Reacting to protesting groups claiming that such a move would affect consumers and tobacco farmers and the economy in general, Prakit said that was inevitable and it was for the government to weigh the pros and cons and make a decision. Prakit affirmed that the tax hike would greatly help reduce the number of smokers. “Once damaged [by smoking], can people’s health be fixed and get back to normal? If cigarettes become more expensive, people won’t smoke and their economic status would improve and health risk [from smoking] lessen,” he said. 

 

The World Health Organisation estimated that Thailand has 1 million patients suffering from smoking-related complications, Prakit said. Each year 50,000 persons die from smoke-related diseases after suffering for at least three years, placing a burden on themselves and their families as well as the country’s healthcare system.

 

Tax hike welcome

 

A source at the Public Health Ministry said the move was practical and useful. “In September 2019, the prices of all cigarette brands would anyway increase as per the previously announced ad-valorem tax increment rate from 20 per cent to 40 per cent by October 1, 2019. Hence the additional hike of Bt2 per packet would be no different. If we can get that extra money to fund the healthcare today, it would be even better,” the source said, saying the tax hike could also be applied to other tobacco products.

 

Dr Hathai Chitanon, president of the Thailand Health Promotion Institute, praised the plan, as it would generate Bt3 billion per year to fund the universal healthcare scheme. He said this move would not cause the business operators and tobacco companies to go bankrupt. “Go ahead with this plan, as it will benefit the majority,” he said.

 

Source: http://www.nationmultimedia.com/detail/national/30355664

 

-- © Copyright The Nation 2018-10-03

[observer90210]

This price hike will not stop people from smoking. Now, if the extra revenue is honestly channeled to pub(l)ic healthcare, fine..definately a big yes!

 

However if the money strangely ends up in any other budget...say the military by the strangest co-incidence...then it's a big "No Way" !!

[loong]

This is total BS!

If poorer people cannot afford cigarettes, they will smoke the rolling tobacco for 5 baht (approx 15gms).

Every time they hike cigarette taxes, I never see any increase in the 5 Baht tobacco.

Cigarettes have filters, roll-ups, usually not.

Is the government simply scared of the outrage if they increased the tax on tobacco?

[brain150]

All taxes are simply theft !!!

Who ever gave a Government [if there is any] the right to steal money from the people ?

Simple answer: Nobody ! They just do it [like the Mafia does !!!]

[IAMHERE]

It is called a 'sin tax' folks; wait until your sin is taxed. Yes, I'm talking to you sugar lovers.

Edited October 3, 2018 by IAMHERE
soften post

[Chassa]

5 baht tobacco and white whisky are cannot be overtaxed - keeps the peasant masses happy! (can't tax ya-ba).

[Ralf61]

7 hours ago, webfact said:

Activists give thumbs up to tobacco tax move

 

Where are all those activists who give thumbs up to a limitation of working hours to, let's say, 5 hours per day and 4 days per week?

[Jip99]

50 minutes ago, Ralf61 said:

 

Where are all those activists who give thumbs up to a limitation of working hours to, let's say, 5 hours per day and 4 days per week?

 

Probably out having a fag....

 

[connda]

Implement draconian taxes so high that only rich people can afford to smoke? 

I actually like that idea!  ????

[Srikcir]

9 hours ago, webfact said:

He said this move would not cause the business operators and tobacco companies to go bankrupt.

No, the additional hike of Bt2 per packet will not cause bankruptcies.

But the hike will also not benefit any health scheme because it may be the hike in excise tax that will cause bankruptcies first.

Thailand: Tobacco Monopoly feels the burn from new excise rates

5 Mar 2018

http://aec.utcc.ac.th/thailand-tobacco-monopoly-feels-the-burn-from-new-excise-rates/

TTM

• is expecting the first loss of about 1.5 billion baht following new excise tax rates
• will seek its first ever loan later in the year of upwards of a billion baht to buy a new machine for a its Ayutthaya
• wants the Excise Department to revise the new tax structure
• will begin to produce cigarettes for other brands
• plans to sell Thai cigarettes overseas with its greater production capacity

As TTM must buy tobacco domestically and is currently paying higher than market prices, it expects a drop in cigarette sales. As such it expects to buy 40% less tobacco that surely will significantly impact Thai tobacco farmers.

[sstuff3]

20 hours ago, webfact said:

He gave the example of Australia where the tax was hiked every six months and where the cigarette price was now as high as A$30 dollars (Bt700) per packet. 

Funny how they used Australia as an example.  

 

Some one needs to do some serious research into the negative effects the high tax on cigarettes in Australia and New Zealand is having on the crime rates.  There are frequent and violent attacks happening in the shops there in attempts to steal cigarettes.  People are getting seriously injured in these attacks.  I'm sure the illegal smuggling of cigarettes is a huge problem also.

 

This is the direct result of taxing a product to the extent it needs to be protected in safes and strongrooms, much like gold and diamonds.  I suspect Thailand will suffer the same consequences but probably a lot sooner than Australia and New Zealand due to the lower income rates here.