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Tobacco Monopoly Told To Boost Cigarette Exports


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Tobacco Monopoly told to boost cigarette exports

RAYONG: -- As the Ministry of Public Health yesterday continued its drive against smoking, the Ministry of Finance prepared to tell the government-owned Thailand Tobacco Monopoly to shift its focus to production for export.

Finance Minister Somkid Jatusripitak said that in the near future he would discuss the government's 'sin tax', whereby tax revenue from cigarette and alcohol sales will be ploughed back into social causes, with the monopoly's board.

The central thrust of the ministry's argument will be that the monopoly should seek to reduce production for domestic sale and boost production for export.

Currently around 95 percent of the country's cigarette production is for the domestic market.

The monopoly is eyeing up a number of measures to make its cigarettes 'healthier', including reducing the size of its cigarettes and cutting the nicotine content.

Mr. Somkid said that there should be more clarity on what the 'sin fund' would be used for and how much money would be used.

He also revealed that he would ask the Department of Excise to draw up legislation authorizing the levying of tax on online gaming.

Mr. Utid Tamvatin, the Director-General of the Excise Department, said that the main problem with the taxation proposal was the fact that many games were downloaded from abroad, with the result that tax would probably have to be in the form of an import tariff.

--TNA 2004-12-17

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