Smoking: Industry hit by new taxes as illegal foreign cigarettes flooding in

 

Picture: Sanook

 

Sanook reported that the tobacco industry was in turmoil as illegal foreign cigarettes were flooding the market. 

 

Growers of tobacco in Thailand and those selling cigarettes and tobacco products are feeling the pinch. 

 

The story comes after the Thai Tobacco Monopoly said that changes to excise regulations would mean a packet of the cheapest Thai cigarettes would rise from 60 baht to 90 baht per pack from October 1st this year. 

 

A tobacco retailer in Viphavadee Rangsit road who runs a shop called Cho Huay said that the industry is at its worst level in 30 years. 

 

Ampha Korkiatsakun said he was being forced to sell some brands at a loss as there were no customers and the cigarettes were rotting on the shelves. He said he was experiencing a 70% drop in demand for Thai cigarettes as foreign cigarettes become relatively more competitive.

 

He could still survive selling foreign brands and loose tobacco - but only just.

 

Sanook also reported that the rise in taxes is having a major impact on tobacco growers.

 

They said that in the 2018 fiscal year the TTM sold 10 billion less Thai cigarettes. 

 

While one industry source reported there was a 6.6% rise year on year of illegal foreign imports with no excise stamps. 

 

Source: Sanook

 

 

-- © Copyright Thai Visa News 2019-02-11

And if the next price rise does go ahead, things for the retailers will get even worse. Money, money, money, is all this place seems to think about, all the while unable to comprehend that slowly but surely, they are choking the life out of the goose with the golden eggs. More expensive places are less attractive and while cigarette smugglers look set to be doing a roaring business, tax revenues are going to dip dramatically.

So what does this have to do with illegal foreign cigarettes?!

7 11 and co don't sell anything illegal, all marlboro and co are taxed there.

Of course people don't buy thai junk that is nearly as expensive as real cigarettes. Why would they?

You can't tell Me that illegal cigarettes account for any big turnover here. There are simply not many countries where u could even buy cheaper...

The guy interviewed also doesn't sell illegal stuff,

Sent from my LYA-L29 using Tapatalk
 

https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds371_e.htm

I am aware of that.
They are suing thailand because they have uneven taxation. Thai cigarettes where far lower taxed and way cheaper.

Now that gap is closing and no one is buying that junk anymore as you can get camel cigs cheaper than some shady thai brands.

Nothing about that has to do with illegal importation of untaxed cigaretts tho. Sure there might be a blackmarket that some thais are using but most cig sales are in 7 11 and co.


People don't buy thai cigs as they are complete shit like most stuff that is produced in thailand.

Typical thai bs as they don't give af about quality but real humans actually value quality.

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"the Thai Tobacco Monopoly said.."

 

cry me a river.

In the same way as Cheddar cheese can be made in Australia, Virginia tobacco can be grown outside America. True American tobacco has a high arsenic content, due to the use in the past of non biodegradable arsenical compounds to combat tobacco mosaic virus. So I avoid true Virginian tobacco. 

29 minutes ago, Father Fintan Stack said:

https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds371_e.htm

You can expect this when dealing with Thais.they do as they please with any contracts that ain't worth the paper there written on.thai cigs are rotten.

1 hour ago, webfact said:

the tobacco industry was in turmoil as illegal foreign cigarettes were flooding the market.

No shit! What did they expect when the minimum price will be 90 baht for a pack?

Edited February 11, 20197 yr by Vacuum

1 hour ago, ThomasThBKK said:

So what does this have to do with illegal foreign cigarettes?!

7 11 and co don't sell anything illegal, all marlboro and co are taxed there.

Of course people don't buy thai junk that is nearly as expensive as real cigarettes. Why would they?

You can't tell Me that illegal cigarettes account for any big turnover here. There are simply not many countries where u could even buy cheaper...

The guy interviewed also doesn't sell illegal stuff,

Sent from my LYA-L29 using Tapatalk
 

 

Quote

You can't tell Me that illegal cigarettes account for any big turnover here. There are simply not many countries where u could even buy cheaper...

 

China, Cambodia and Vietnam produce and sell copy/real cigs for far less than is charged in Thailand. My premium Japanese brand costs 150 baht a pack of 20. I can buy an entire carton of the same brand in Vietnam at the retail price for a bit over the cost of just two packs in Thailand. 240,000 VND/330 baht.

 

I have never bought a carton off the mobile vendors in Pattaya so don't know the quality but lots of people buy them. 

 

As for Thai junk, quite a few in fact do buy these cheapo brands.

Laos cigarettes cost retail  5000 kip or 20 baht a packet. They're OK.no better or worse than Thai smokes.

Purchasing in bulk...hundreds of cartons will make them even  cheaper with small outlay.Mekong river isn't guarded during daytime. Thais are completely stupid. How can you impose huge taxes on smokes when you share porous land borders with countries with dirt cheap smokes?

No consequences.?

Thais don't smoke Laos smokes now but they will soon.!!!!

11 minutes ago, Vacuum said:

No shit! What did they expect when the minimum price will be 90 baht for a pack?

I have here Blue River , my TW gets them over the border in Myanmar , we only live about 25k from there. But even these have gone up in price . They were 150B for 200 ,last week 180B.  When I arrived on these shores in 2005 local ciggies were 38B per pack . Now looking to be 90.

As a smoker I would ask them to make a packet 280/300 baht. No way would I pay that and it would be the perfect reason to stop.

PS. Don't post anything on willpower, just stop it's easy blah blah blah.

I've already changed to RYO.

4 hours ago, webfact said:

The story comes after the Thai Tobacco Monopoly

Speaks volumes.... 

4 hours ago, toofarnorth said:

I have here Blue River , my TW gets them over the border in Myanmar , we only live about 25k from there. But even these have gone up in price . They were 150B for 200 ,last week 180B.  When I arrived on these shores in 2005 local ciggies were 38B per pack . Now looking to be 90.

You still got a lung ...

Time for the Thai gov to give e-cigs a try....

E-cigarettes 'much better for quitting smoking'

https://www.bbc.com/news/health-47041111

 

 

4 hours ago, Vacuum said:

I've already changed to RYO.

are you buying local tobacco from the market ?
 

Shoot yourself in the face with massive tax and learn no lessons then repeat over and over ????

. . . cigarettes were rotting on the shelves

 

Better than rotting in somebody's lungs.

Here is a suggestion, stop foreign tourists from having to make border bounces. Charge a reasonable monthly rate at immigration for people to stay as long as they want. Say 1,900 baht a month. Every daily van that makes the trip has both tourist and the van drivers bringing back a carton of cigarets a person. I don't smoke so the driver always gives me a carton to bring back on his behalf. Thousands of cartons a day arriving in Pattaya. The same goes for booze. I always pick up a bottle. The van driver I go with always picks up a bottle of Johny Walker Blue. He must have a standing order. 

15 hours ago, wombat said:

are you buying local tobacco from the market ?
 

Yes, 5baht/pack.

If

a). Everyone simply gave up smoking, and 

B). Governments everywhere banned outright the production, sale, posession and use of tobacco products,

 

There would not be any problem. The diehards would disappear through natural attrition.

 

Look how well it has worked over the years with alcohol, opiates, etc. etc.

(Irony)

Pity about the tax revenues.

 

 

On 2/12/2019 at 7:41 AM, Vacuum said:

Yes, 5baht/pack.

curious asks...what weight of tobacco do you get for 5 baht ?

8 minutes ago, wombat said:

curious asks...what weight of tobacco do you get for 5 baht ?

14 grams.

One of my friend's wives had a pack of L&M Blue she'd gotten from Vietnam.  Had a few of them, man, A LOT smoother than the shit L&M Blue I used to smoke here.   Recently tried Camels in the light blue colored box, 60 Baht - also a lot better than the L&M Blue.

 

Edited February 13, 20197 yr by 55Jay