Cigarette Price Hike Sparks Surge in Illicit Trade

[webfact]

 

The Thai tobacco industry has recently been rocked by a price increase, prompting smokers to turn towards the illicit cigarette trade.

 

Citing increased production costs, major domestic and international tobacco manufacturers have raised their retail prices by THB 3-4 per pack. The adjustment follows a scarcity and price surge of raw materials, exacerbated by the Russia-Ukraine conflict.

 

Tobacco Authority of Thailand’s announcement outlines the new pricing for 16 brands, ranging from THB 67 to THB 105 per pack, a shift from the previous THB 63 to THB 102 range, reported Daily News.

 

The hike, however, has not been well-received by the smoking populace. Retailers and street surveys reveal a visible pivot towards illicit, untaxed cigarettes, which are 2-3 times cheaper and increasingly available not only in the southern regions but also in Bangkok and its vicinities.

 

Picture: Daily News

 

The affordability of these illegal cigarettes, priced at a mere THB 28-32 per pack, juxtaposed against the legal THB 70-105 range, is accelerating their prevalence.

 

The surge is facilitated by easy access through online cross-border and local clandestine suppliers, circumventing the regulatory radar with the aid of private courier services lacking advanced scanning equipment.

 

The Tobacco Authority assures that the price adjustment was necessitated by increased production costs, not profit motives. But as the authority grapples with the prevailing issue of price-setting discrepancies and burgeoning illegal trade, the public's shift to untaxed, cheaper alternatives amplifies, underscoring a need for a balanced approach to taxation and pricing that considers market realities and consumer tendencies.

 

Top Picture: Daily News

 

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[2baht]

Filth!

[redwood1]

10 minutes ago, 2baht said:

Filth!

I agree .....They are filth for making us pay more for our smokes..

[dinsdale]

Wait for the tax hike. Way more than a few baht. Bt10-Bt20 maybe is my guess. Have to pay for the populist e-wallet.

[ignore it]

Hmm.

Still a bit cheaper than 

560 bhat a pack in the UK  930 B in Oz,

325 B in the US

 

[hotchilli]

8 hours ago, webfact said:

The hike, however, has not been well-received by the smoking populace. Retailers and street surveys reveal a visible pivot towards illicit, untaxed cigarettes, which are 2-3 times cheaper and increasingly available not only in the southern regions but also in Bangkok and its vicinities

Queue the illegal cigs coming in from Cambodia

[shackleton]

I am all for people who want to smoke pay higher prices same in the 

UK ????

Nearly £10 per pack 

If not for those people paying the high tax 

The Government would be looking else where to recover the tax lost 

 

Maybe a rise in Alcohol prices ????

[Chelseafan]

9 minutes ago, shackleton said:

I am all for people who want to smoke pay higher prices same in the 

UK ????

Nearly £10 per pack 

If not for those people paying the high tax 

The Government would be looking else where to recover the tax lost 

 

Maybe a rise in Alcohol prices ????

 

£10 a pack in the UK ? Try nearly £15.

 

As a self-loathing smoker, they should tax the hell out of it!! That's the easiest way to get us to quit !!

 

The downside is that over time there will be less smokers which equates to less tax and people liveing longer so more pensions are paid out. I suppose they'll go for the motorist even MORE now to make up the deficit.

 

 

[superal]

35 minutes ago, Chelseafan said:

 

£10 a pack in the UK ? Try nearly £15.

 

As a self-loathing smoker, they should tax the hell out of it!! That's the easiest way to get us to quit !!

 

The downside is that over time there will be less smokers which equates to less tax and people liveing longer so more pensions are paid out. I suppose they'll go for the motorist even MORE now to make up the deficit.

 

 

Golden Virginia tobacco is now  £34 for a 50 gram pouch . Many in the UK now vaping but come to Thailand with your vape is risky as a foreigner but not Thai folk  . Thai vape laws set up to extract funds from foreigners and not for health reasons .

[VocalNeal]

6 minutes ago, superal said:

Thai vape laws set up to extract funds from foreigners

Or to protect tobacco monopoly.????

[jacko45k]

1 hour ago, shackleton said:

Maybe a rise in Alcohol prices

Tax weed!

[Photoguy21]

Maybe I am blind but I cant see an avid smoker giving up cigarettes for a 4 Baht price hike. I could be wrong but I doubt it.

[JonnyF]

1 hour ago, Chelseafan said:

The downside is that over time there will be less smokers which equates to less tax and people liveing longer so more pensions are paid out. I suppose they'll go for the motorist even MORE now to make up the deficit.

 

The tax shortfall will probably be made up by green taxes, that's why the lies are being pushed so heavily by the doomsday cultists and climate alarmists.

 

I think the better solution for Thailand would be to legalize and tax vaping. It is far less harmful than tobacco and in my case actually enabled me to quit smoking (cigs and vapes) altogether. 

[superal]

3 minutes ago, JonnyF said:

The tax shortfall will probably be made up by green taxes, that's why the lies are being pushed so heavily by the doomsday cultists and climate alarmists.

 

I think the better solution for Thailand would be to legalize and tax vaping. It is far less harmful than tobacco and in my case actually enabled me to quit smoking (cigs and vapes) altogether. 

Exactly and that is why the Thai gov; will not legalize vaping i.e. people stop smoking = loss of taxes to the gov;  and revenue to the tobacco industry VIPs in Thailand . 

[kickstart]

Where I am most of the locals smoke roll ups ,you can still get a small pack of Black Cat tobacco for a few baht,it is locally grown tobacco.

Back in the UK, I know people who roll they own ,never buy it in the UK ,know someone who buys it across the channel,truck drivers, and sell it on,bit like what the op said.  

[brianthainess]

3 hours ago, hotchilli said:

Queue the illegal cigs coming in from Cambodia

On sale all over Pattaya for years. 

[brianthainess]

Last I heard in OZ 50aud a pack, class A drugs are cheaper, I've been told.

[marcusb]

4 hours ago, jacko45k said:

Tax weed!

I enjoy weed, I would gladly pay a reasonable tax.  Other countries were it is legal tax it. 

[cowellandrew]

How much tax revenue does the UK raise from cigs!

[Chelseafan]

4 hours ago, cowellandrew said:

How much tax revenue does the UK raise from cigs!

Google is your friend.

 

Tobacco duty receipts held up well relative to the large pandemic-related fall in GDP in 2020-21, standing at £9.8 billion and reaching £10.2 and £10.0 billion in 2021-22 and 2022-23, respectively. About 1.25% of total revenue collected.