Taxing choices: Thai Excise Department ponders single rate or weighty decision for cigarettes

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Ekniti Nitithanprapas, Excise Department Director-General, announced that the department is deliberating over whether to implement a single tax rate or a weight-based tax for cigarettes. Currently, the tax structure is a two-tier system, with a 25% tax applied to cigarette packs retailing at up to 72 baht (US$2), aimed at reducing the impact on low-income individuals.

Packs costing more than 72 baht are taxed at 42%. An additional flat-rate tax of 1.25 baht (US$0.036) per cigarette is also applied, regardless of the pack’s retail price.

 

The two-tier system, according to Ekniti, has led to cigarette manufacturers selling packs for 72 baht or less to avoid higher tax rates. If a single tax rate is to be implemented, it must balance the income of farmers, public health, government revenue and the prevention of the smuggling of cheaper foreign brands.

 

This single rate, if chosen, should fall between 25% and 42%. However, further study is needed to assess the potential impact of a single tax rate. The previous two-tier tax structure, which expired in September 2021, taxed packs priced up to 60 baht at 20%, and those above 60 baht (US$1.72) at 40%, reported Bangkok Post.

 

by Alex Morgan 

Photo courtesy of iStock

 

Full story: The Thaiger 2024-01-15

 

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[Robin]

Why always the fuss about "low income earners"  Smoking is not compulsory, so raise the tax, double it or more and improve their health.  Also save the passive smokers by enforcing to non-smoking rules

[LukKrueng]

2 hours ago, Robin said:

Why always the fuss about "low income earners"  Smoking is not compulsory, so raise the tax, double it or more and improve their health.  Also save the passive smokers by enforcing to non-smoking rules

Same for alcohol, sweet drinks and food...

[loong]

2 hours ago, Robin said:

Why always the fuss about "low income earners"  Smoking is not compulsory, so raise the tax, double it or more and improve their health.  Also save the passive smokers by enforcing to non-smoking rules

Smoking is an addiction and I believe that it has been proved that increasing the price does little to encourage people to quit.

I know just how hard it is to quit smoking, I tried many times. Only after a health matter was I finally able to give up.

Low income people with a smoking addiction will still spend money on cigarettes even though they cannot afford it, so their families suffer.

In Thailand they do have the option of cheap tobacco, but I think that they may be even worse for health with thick rolling papers and no filters.

[Troy Tempest]

14 hours ago, loong said:

Smoking is an addiction and I believe that it has been proved that increasing the price does little to encourage people to quit.

I know just how hard it is to quit smoking, I tried many times. Only after a health matter was I finally able to give up.

Low income people with a smoking addiction will still spend money on cigarettes even though they cannot afford it, so their families suffer.

In Thailand they do have the option of cheap tobacco, but I think that they may be even worse for health with thick rolling papers and no filters.

 

Nonsense!

 

Giving up smoking is easy!

 

I've done it loads of times!