Govt Concerned About Loss Of Cigarette Income

[george]

CIGARETTE DISPLAY BAN: Concern about loss of income

BANGKOK: -- Excise chief fears upcoming move will cut govt revenue. Excise Department chief Utis Thammavathin expressed concern yesterday that the ban on cigarette displays at all points of purchase will hurt the country’s revenue collection.

Utis raised his concerns during a meeting with the Dr Vichai Tienthavon, permanent secretary of the Public Health Ministry, an informed source at the ministry revealed.

Utis was reacting to the ministry’s plan to impose the ban on September 24, the source said.

According to the National Statistics Office, there are about 10 million Thai smokers and the country’s cigarette consumption has now reached 55 to 60 billion cigarettes per year.

Thailand’s cigarette industry is estimated to be worth Bt74.29 billion per year, which translates into excise worth about Bt30 billion a year.

The source quoted Utis as saying the government was expecting to earn more income but the ban on cigarette being displayed at points of purchase would effectively cut the amount of excise raised.

Utis claimed that the Thailand Tobacco Monopoly (TTM), the state-owned cigarette manufacturer, would suffer a serious impact, because international companies were likely to have other subtle means to ply their products while TTM relies heavily on displays at sales venues.

The country was said to earn a huge amount of money from TTM each year.

Advertising of cigarettes is prohibited by law.

The Public Health Ministry announced it would ban the display of cigarettes at all sales venues following a poll that showed the public agreed that such displays counted as advertising.

Vichai said yesterday his ministry would not postpone the ban on cigarettes being displayed but would relay Utis’ concerns to Public Health Minister Suchai Charoen-ratanakul.

“We are going to look for the best options, but must admit that the ban will affect the country’s income. At the moment, our ministry is on a mission to promote good health,” Vichai said.

All relevant parties including the Excise Department, cigarette companies, and anti-smoking activists would be invited for a meeting to find a solution, he said.

But Dr Hatai Chitanondh, chairman of the Thai Health Promotion Institute, defended the ministry’s planned move.

He said scientific research showed that cigarette displays attract new smokers.

He also pointed out that the country shouldered about Bt40 billion in annual healthcare costs for smoking-related diseases, such as lung cancer and emphysema.

“These costs are also rising. Therefore, it’s not worth caring about Bt30 billion in excise from cigarettes per year,” Hatai said.

--The Nation 2005-08-30

[Scott]

Is there anything else we could smoke instead of cigarettes?

[Ricardo]

You mean cigars, or pipes ?

[raro]

hmmm...first they ask me to stop...so I did and now they're whining over the loss in income?

[meelousee]

I thought the whole idea of banning displays, gross photos of dying or dead people on the packages were to encourage folks to stop

Now that many have they complain about loss of revenue?

Did they expect us to buy them anyway and not smoke?

I suppose they expected us to use them as suppositories!

[Scott]

Ricardo: Well, I didn't exactly mean cigars or pipes.

[Ricardo]

Ricardo:  Well, I didn't exactly mean cigars or pipes.

<{POST_SNAPBACK}>

Sorry - just trying to 'weed' out wrong-answers. Spliffing fun, old chap

[sunreader]

Ricardo:  Well, I didn't exactly mean cigars or pipes.

<{POST_SNAPBACK}>

Sorry - just trying to 'weed' out wrong-answers. Spliffing fun, old chap

<{POST_SNAPBACK}>

Mmm imagine if they openly sold weed but taxed it. It would bring dopers in from all over the world not to mention huge revenues.

I wonder why they don't?

Bow down to the American warlord dog!

[astral]

Have they factored in decrease in medical expenses over the next 50 years

as less people contract Lung Cancer and similar diseases?

I thought not!

[Khun Jean]

Why medical treatment is only 30 baht.

[kalaminsa]

It's bad for you , your teeth can fall out ,your lungs and heart will be affected and you may die an agonizing prolonged death but please buy, we need the revenue .

Is that going to be the new text on the cigarrette packs ??

Edited August 31, 2005 by kalaminsa