Billions Of Baht Going Up In Smoke

Billions of baht going up in smoke

Smugglers cost state dearly, study reveals

BANGKOK: Contraband and counterfeit cigarettes are costing the country billions of baht in revenue each year, a research paper has revealed.

Conducted by Sangsit Piriyarangsan of Chulalongkorn University, the study estimated annual sales of fake Krong Thip 90 cigarettes alone accounted for 3-4 billion baht per year.

According to the paper, authorities seized only 5% of fake cigarettes smuggled into the country.

Contraband cigarettes were reportedly smuggled from various countries via Cambodia, Laos and Malaysia, and distributed to some 510,000 retailers nationwide.

The world's largest producers of fake cigarettes were named as China, Indonesia, the Philippines and Cambodia.

The paper said revenue lost to counterfeit cigarettes had caused a drop in the earnings of the Tobacco Monopoly of Thailand.

Annual revenue from cigarette sales dropped 2.2 billion baht in three years, from 40.6 billion baht in 1998 to 38.4 billion baht in 2001, it said.

Of the total sales, 85% were local brands.

The paper said supplying counterfeit cigarettes was a highly lucrative business because of uncomplicated production and distribution processes.

A packet of fake cigarettes cost 3-4 baht to manufacture and could be sold for as much as 35 baht, it said.

The paper blamed lax law enforcement for the amount of fake cigarettes flowing into the country, urging authorities to shift their focus to prevention rather than suppression.

Mr Sangsit suggested methods to combat the smuggling of counterfeit cigarettes be raised for discussion at an international forums.

He also called for harsher penalties against smugglers and the launching of a campaign to raise awareness among consumers.

Source: Bangkok Post