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Excise Dept attributes drop in revenue to cigarette smuggling


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BANGKOK (NNT) - At a meeting of the parliamentary committee drafting the 2022 Budget Bill reviewing the funding of the Customs, Excise and Revenue departments, it was noted that the collection of taxes on tobacco are being targeted due to up to 30 percent of cigarettes sold in the country being illegal.

 

The committee focused its latest meeting on the budgets of Ministry of Finance agencies, reviewing the proposed 4.095-billion-baht budget of the Customs Department, 2.194-billion-baht budget of the Excise Department and 9.569-billion-baht budget of the Revenue Department.

 

The Excise Department presented findings to the committee showing that the sale of illegal cigarettes in the country has risen 30 percent, while legal sales have fallen. It was noted that Ministry of Public Health campaigns about the dangers of tobacco have undercut support for domestic tobacco growers and suggested farmers be aided, and the tax structure for cigarettes be revamped to counteract smuggling.

 

The body is to continue reviewing revenue collection by the different agencies while taking into account the impact of the COVID-19 pandemic.

 

Another 10 agencies and one fund are pending review by the committee. They include the Public Debt Management Office, which has proposed a budget of 249.89 billion baht, the Bank for Agricultural and Agricultural Cooperatives with its request for over 70 billion baht, and the Government Savings Bank, which has proposed a 4 billion baht budget.

 

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18 minutes ago, RR2020 said:

Well imagine that.

 

You tax something to death and suddenly tax revenues fall as you have created a "black market" in smuggled cigarettes.  Wow....nobody could ever have imagined that.

 

Like in the UK.  The government claims smoking has reduced greatly thanks to "official sales figures" while completely ignoring that probably 60% of cigarettes consumed in the UK are now smuggled.

 

Its as if politicians worldwide have links to organised crime and smuggling rings - raise the tax - look good -  create black market - everyone associated gets rich from smuggled goods - government official tax revenues fall.........

 All I know is I quit because of the cost of a pack of smokes. Wish they had done the tax increase decades earlier and maybe Dad would have gotten out of his 40's.  When smuggling peaked in Canada a few decades ago an investigation found a couple cigarette companies themselves were doing the smuggling. A few corporate executives got sent up the river for that. 

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7 hours ago, Jonathan Fairfield said:

to up to 30 percent of cigarettes sold in the country being illegal.

 

7 hours ago, Jonathan Fairfield said:

the sale of illegal cigarettes in the country has risen 30 percent

 

So before the rise, up to 23 per cent were illegal, so only now 'losing' 7 per cent revenue.

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7 hours ago, RR2020 said:

Well imagine that.

 

You tax something to death and suddenly tax revenues fall as you have created a "black market" in smuggled cigarettes.  Wow....nobody could ever have imagined that.

 

Like in the UK.  The government claims smoking has reduced greatly thanks to "official sales figures" while completely ignoring that probably 60% of cigarettes consumed in the UK are now smuggled.

 

Its as if politicians worldwide have links to organised crime and smuggling rings - raise the tax - look good -  create black market - everyone associated gets rich from smuggled goods - government official tax revenues fall.........

Exactly! 

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No mention that the millions of tourists that once visited the country would have purchased cigarettes resulting in a massive drop. Just like the beer story last week, some people cannot see the trees for the forest.

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I would have thought at this time that any form of smuggling should be at an all time low 

with all the extra border patrols Oh silly me, maybe they should check his bank accounts

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A period when the sale of alcohol was banned completely then bars closed, entertainment closed, restaurants closed or not allowing sale of alcohol all may have something to do with it.

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