Pheu Thai Party To Campaign Against Foreign Cigarette Manufacturers

[webfact]

Opposition to campaign against cigarette manufacturers

By The Nation

The Opposition will today move to start its campaign against foreign cigarette manufacturers alleged to have avoided tax payments.

Pheu Thai Party party list MP Prakiat Nasimma, the party's legal specialist, and Yuthapong Charatsathien, Pheu Thai Party deputy spokesman, held a press conference yesterday on the Opposition's censure motion and proposed impeachment of Prime Minister Abhisit Vejjajiva.

They alleged the PM interfered with the justice system in favour cigarette maker Philip Morris (Thailand) who was accused of avoiding taxes, causing the state to lose up to Bt68 billion.

Yuthapong said he would submit a letter of opposition against the foreign cigarette company with Health Minister Jurin Laksanawisit. He would also meet with Prakit Vathesatogkit, secretary-general of the Anti-Smoking Foundation to seek his support in the campaign; and he would submit a letter to the Thai Health Promotion Foundation calling for its director to oppose the cigarette company.

Prakiat said he was informed that senior officials in the Office of the Attorney-General flew by Air Asia flight FD 3600 on November 3 last year to Macau and back on November 6. He questioned the timing of their trip saying they were travelling when the PM had ordered a review of the prosecutors' decision to drop charges against Philip Morris (Thailand). "We want to know why they travelled to Macao, because Macao is known as a place for money laundering,'' he said.

Meanwhile, Democrat Party spokesman Dr Buranat Samutrak and Thepthai Senpong, personal spokesman of the Democrat Party leader, denied reports that some government members had lobbied the opposition not to submit the censure motion. They said the Democrat Party has always called on the Opposition to use the parliamentary mechanism when it want to check the government.

-- The Nation 2011-03-14

[bangkokeddy]

misleading headline.

[Sydebolle]

Maybe they went just sightseeing and gambling; as 99% of all other visitors.....

[asiawatcher]

Why doesn't PTP do something constructive for the country - I guess when you have no plans and no leadership - all you can do is grab headlines and wallow in fellow 'back-patting'. And when PTP loses the elections - it will all revert to normal, more whinging, more protests and more civil unrest. Just a bunch of oxygen bandits in my opinion...

[anterian]

Why doesn't PTP do something constructive for the country - I guess when you have no plans and no leadership - all you can do is grab headlines and wallow in fellow 'back-patting'. And when PTP loses the elections - it will all revert to normal, more whinging, more protests and more civil unrest. Just a bunch of oxygen bandits in my opinion...

Why did you bother to comment, it adds nothing to the OP? You have made your opinion abundantly clear already.

[exbelg]

I got a suggestion : just ban the sale of tobacco for everybody.... use in life = 0 for everybody, except the sellers of death

[yoshiwara]

Since the PTP have no economic policy programme which represents any soical change at all, they need headline policies which give both the illusion of representing their constituencies and playing the nationalist card as well to compete with the rising PAD profile. There are now two campaigns on the table which meet Thaksin's policy which must not threaten the NE regional ruling class interests. Both are anti-foreigner: The first one is to attack the PM for his British background (...he is not a true Thai). The second now is to attack foreign cigarette manufacturers. Attacking foreign cigarette companies provides the right razzmatazz and plays well also to the 'progressive' gallery who miss the foreign bit and only think it is about the 'healthy' angle. Thaksin will have them in his pocket. What he really will be going for is a Thaksin 'rent' ie encourage the cigarette companies to pay him off to lessen the pressure.

[Emptyset]

Since the PTP have no economic policy programme which represents any soical change at all, they need headline policies which give both the illusion of representing their constituencies and playing the nationalist card as well to compete with the rising PAD profile. There are now two campaigns on the table which meet Thaksin's policy which must not threaten the NE regional ruling class interests. Both are anti-foreigner: The first one is to attack the PM for his British background (...he is not a true Thai). The second now is to attack foreign cigarette manufacturers. Attacking foreign cigarette companies provides the right razzmatazz and plays well also to the 'progressive' gallery who miss the foreign bit and only think it is about the 'healthy' angle. Thaksin will have them in his pocket. What he really will be going for is a Thaksin 'rent' ie encourage the cigarette companies to pay him off to lessen the pressure.

Abhisit wasn't attacked for being British, the issue over his citizenship arouse because of the ICC jurisdiction, not over nationalist issues. Of course, his non-denial and then subsequent admittance that he was a British citizen made the issue worse for him. I don't think red shirts care about his British citizenship, as far as I can tell, he's been gently mocked for it, but it's way down the list of issues. And is the campaign against Philip Morris because they're foreign, or is it because they've apparently avoided paying a lot of tax with alleged help from certain people in the current government? Again, I think the fact that they're foreign is way down the list of issues.

How is the PAD profile rising anyway? They're only attracting a 1000 people at best. I don't think red shirts or PTP see them as much of a threat that needs combating at this point.

[yoshiwara]

Since the PTP have no economic policy programme which represents any soical change at all, they need headline policies which give both the illusion of representing their constituencies and playing the nationalist card as well to compete with the rising PAD profile. There are now two campaigns on the table which meet Thaksin's policy which must not threaten the NE regional ruling class interests. Both are anti-foreigner: The first one is to attack the PM for his British background (...he is not a true Thai). The second now is to attack foreign cigarette manufacturers. Attacking foreign cigarette companies provides the right razzmatazz and plays well also to the 'progressive' gallery who miss the foreign bit and only think it is about the 'healthy' angle. Thaksin will have them in his pocket. What he really will be going for is a Thaksin 'rent' ie encourage the cigarette companies to pay him off to lessen the pressure.

Abhisit wasn't attacked for being British, the issue over his citizenship arouse because of the ICC jurisdiction, not over nationalist issues. Of course, his non-denial and then subsequent admittance that he was a British citizen made the issue worse for him. I don't think red shirts care about his British citizenship, as far as I can tell, he's been gently mocked for it, but it's way down the list of issues. And is the campaign against Philip Morris because they're foreign, or is it because they've apparently avoided paying a lot of tax with alleged help from certain people in the current government? Again, I think the fact that they're foreign is way down the list of issues.

How is the PAD profile rising anyway? They're only attracting a 1000 people at best. I don't think red shirts or PTP see them as much of a threat that needs combating at this point.

You make some interesting points, but I am not so sure that the issues are as sotto voce as you think when played to the constituency leading up to an election. One thing we learned from last year was that the reds are quite happy pushing quite different emphases on messages to supporters and the outside world. Something has to fill the red vacuum of absent economic policies. Accusing the other side of corruption also fits the bill of driving attention away from Thaksin's convictions for corruption while the troops are out parading his banners.

[Smee]

Aside from the political posturing, the core isue here is the purported avoidance of tax by Philip Morris. In fact, the evidence seems to suggest that Thailand's revenue dpartment has actually been OVERcharging Philip Morris for some years - certianly, the dispute between Thailand and the Philippines, where PM manufactures the cigarettes it sells in Thailand, has been arbitrated by the WTO, which found Thailand to be in violation of a number of GATT articles. Following is a report we publshed recenty (I wrote it, it there are no copyright issues Mr. Moderator):

Thailand: Case closed?

The Philippines has claimed victory in its long-running dispute with Thailand over the imposition of taxes on imported cigarettes. WTO case DS371, AKA Thailand -- Customs and Fiscal Measures on Cigarettes from the Philippines, was initiated by the Philippines in February 2008, The WTO panel released its 426 page report on November 15, 2010.

The case had to do with Thai taxes imposed on imported cigarettes causing a significant drop in Philippine cigarette exports over the two years leading up to the filing of the case. Philip Morris Philippines Manufacturing Inc.'s (PMPMI) sales to Thailand, primarily of Marlboro and L&M, account for an estimated 95% of its total exports, and the Thai taxes significantly impacted the export earnings. At the heart of the complaint is the fact that the Thai government owns and controls the Thai Tobacco Monopoly (TTM), which "is the only business entity authorized by Thai law to produce cigarettes in Thailand." The Philippines contended that Thailand was violating WTO national treatment provisions with its tax structure, specifically identifying "violations or inconsistencies" that purportedly exist between the Thai measures and various provisions of the Agreement Implementing Article VII of GATT 1994 and the GATT itself in areas of customs valuation, excise tax, health tax, TV tax, VAT regime, retail licensing requirements and import guarantees, along with the national treatment provisions of the WTO.

"Thailand requires that tobacco and/or cigarette retailers hold separate licenses to sell domestic and imported cigarettes, respectively," according to the Philippine complaint, which claimed that the dual licensing "leads to discriminatory treatment against the imported cigarettes and is thus a violation of Article III.4 of the GATT."

While the WTO panel rejected Philippine claims under Article X:3(a) of the GATT, as well as Articles 4 and 7.1 of the Customs Valuation Agreement, it did find that the Thais acted inconsistently with the provisions of Articles 1.1, 1.2, 1.2(a), 7.1, 7.3, 10, and 16 of the Customs Valuation Agreement; and Articles III.2 and III.4, as well as X.1, X.3(a), and X.3( of the GATT. "Thailand does not maintain or apply a general rule requiring the rejection of the transaction value and the use of the deductive valuation method," the panel found.

Thailand may appeal the decision.

Edited March 14, 2011 by Smee

[Smee]

Sorry about the smiley, I can't ged rid of it, its supposed to read X.3 ( b )

Edited March 14, 2011 by Smee

[Jingthing]

Attacking foreign bogeymen, always good politics in most countries.

[animatic]

More attempts at guilt by innuendo?

Yes, of course, attack farangs making money on Thais.

PTP's friends weren't getting their cut maybe?

Or just the usual attempt at making anything at all stick to the Dems. So far nothing legit or fabricated has been found to bring them down, somehow I don't see PTP's track record improving on this score.

So this means it is just an attempt at political smear before the election. PTP desperation can be tasted in the air like rancid butter

Edited March 14, 2011 by animatic

[robertson468]

Aside from the political posturing, the core isue here is the purported avoidance of tax by Philip Morris. In fact, the evidence seems to suggest that Thailand's revenue dpartment has actually been OVERcharging Philip Morris for some years - certianly, the dispute between Thailand and the Philippines, where PM manufactures the cigarettes it sells in Thailand, has been arbitrated by the WTO, which found Thailand to be in violation of a number of GATT articles. Following is a report we publshed recenty (I wrote it, it there are no copyright issues Mr. Moderator):

Thailand: Case closed?

The Philippines has claimed victory in its long-running dispute with Thailand over the imposition of taxes on imported cigarettes. WTO case DS371, AKA Thailand -- Customs and Fiscal Measures on Cigarettes from the Philippines, was initiated by the Philippines in February 2008, The WTO panel released its 426 page report on November 15, 2010.

The case had to do with Thai taxes imposed on imported cigarettes causing a significant drop in Philippine cigarette exports over the two years leading up to the filing of the case. Philip Morris Philippines Manufacturing Inc.'s (PMPMI) sales to Thailand, primarily of Marlboro and L&M, account for an estimated 95% of its total exports, and the Thai taxes significantly impacted the export earnings. At the heart of the complaint is the fact that the Thai government owns and controls the Thai Tobacco Monopoly (TTM), which "is the only business entity authorized by Thai law to produce cigarettes in Thailand." The Philippines contended that Thailand was violating WTO national treatment provisions with its tax structure, specifically identifying "violations or inconsistencies" that purportedly exist between the Thai measures and various provisions of the Agreement Implementing Article VII of GATT 1994 and the GATT itself in areas of customs valuation, excise tax, health tax, TV tax, VAT regime, retail licensing requirements and import guarantees, along with the national treatment provisions of the WTO.

"Thailand requires that tobacco and/or cigarette retailers hold separate licenses to sell domestic and imported cigarettes, respectively," according to the Philippine complaint, which claimed that the dual licensing "leads to discriminatory treatment against the imported cigarettes and is thus a violation of Article III.4 of the GATT."

While the WTO panel rejected Philippine claims under Article X:3(a) of the GATT, as well as Articles 4 and 7.1 of the Customs Valuation Agreement, it did find that the Thais acted inconsistently with the provisions of Articles 1.1, 1.2, 1.2(a), 7.1, 7.3, 10, and 16 of the Customs Valuation Agreement; and Articles III.2 and III.4, as well as X.1, X.3(a), and X.3( b ) of the GATT. "Thailand does not maintain or apply a general rule requiring the rejection of the transaction value and the use of the deductive valuation method," the panel found.

Thailand may appeal the decision.

As the post says - CASE CLOSED!

[Foggy Bottom]

Strange that the case revolves around the charge of "Tax avoidance".

In most countries (if not all) Tax Avoidance is legal, it is Tax Evasion that is illegal.

Tax avoidance is merely the correct application of the rules in order to minimise or expunge tax liability in accordance with the taxation rules and the inclusion of permitted offsets and reductions.

Tax evasion is primarily caused by failure to disclose all or some of received income, or to falsely state allowable offsets and reductions.

If PTP don't have at least one accountant in the party who knows the difference, then they are a finished force because the Revenue Department will be all over them like a bad rash ... eventually.

[housepainter]

No thoughts of the health costs or implications then of smoking per se?

Thought not.

Actually, let's be accurate here; health costs are minimal as all the smokingt related illnesses are ignored anyway by the wonderful Thai health Service that abandons its non paying public patients to a 30 baht service. That wouldn't buy a new scalpel blade to rip open your throax and go in search of the rotting blackened tar filled lungs anyway.

[rubl]

No thoughts of the health costs or implications then of smoking per se?

Thought not.

Actually, let's be accurate here; health costs are minimal as all the smokingt related illnesses are ignored anyway by the wonderful Thai health Service that abandons its non paying public patients to a 30 baht service. That wouldn't buy a new scalpel blade to rip open your throax and go in search of the rotting blackened tar filled lungs anyway.

Minor correction. Under PM Surayud the 30-baht universal healthcare program was made completely free.

[bangon04]

Attacking foreign bogeymen, always good politics in most countries.

Well attacking the Thai Tobacco Monopoly owners could get one in a lot more trouble than just a tax bill.....

[patjem]

Strange that the case revolves around the charge of "Tax avoidance".

In most countries (if not all) Tax Avoidance is legal, it is Tax Evasion that is illegal.

Tax avoidance is merely the correct application of the rules in order to minimise or expunge tax liability in accordance with the taxation rules and the inclusion of permitted offsets and reductions.

Tax evasion is primarily caused by failure to disclose all or some of received income, or to falsely state allowable offsets and reductions.

If PTP don't have at least one accountant in the party who knows the difference, then they are a finished force because the Revenue Department will be all over them like a bad rash ... eventually.

And this is a group that wants to run this country..... Scary prospect if that's the typical type of policy they come up with

[bangkokeddy]

Since the PTP have no economic policy programme which represents any soical change at all, they need headline policies which give both the illusion of representing their constituencies and playing the nationalist card as well to compete with the rising PAD profile. There are now two campaigns on the table which meet Thaksin's policy which must not threaten the NE regional ruling class interests. Both are anti-foreigner: The first one is to attack the PM for his British background (...he is not a true Thai). The second now is to attack foreign cigarette manufacturers. Attacking foreign cigarette companies provides the right razzmatazz and plays well also to the 'progressive' gallery who miss the foreign bit and only think it is about the 'healthy' angle. Thaksin will have them in his pocket. What he really will be going for is a Thaksin 'rent' ie encourage the cigarette companies to pay him off to lessen the pressure.

Abhisit wasn't attacked for being British, the issue over his citizenship arouse because of the ICC jurisdiction, not over nationalist issues. Of course, his non-denial and then subsequent admittance that he was a British citizen made the issue worse for him. I don't think red shirts care about his British citizenship, as far as I can tell, he's been gently mocked for it, but it's way down the list of issues. And is the campaign against Philip Morris because they're foreign, or is it because they've apparently avoided paying a lot of tax with alleged help from certain people in the current government? Again, I think the fact that they're foreign is way down the list of issues.

How is the PAD profile rising anyway? They're only attracting a 1000 people at best. I don't think red shirts or PTP see them as much of a threat that needs combating at this point.

Not many people here reading past the headline.

[Buchholz]

There are now two campaigns on the table which meet Thaksin's policy which must not threaten the NE regional ruling class interests. Both are anti-foreigner: The first one is to attack the PM for his British background (...he is not a true Thai).

Censure Debate Against Thai PM, 9 Other Ministers Begins

The prime minister's holding of dual nationality -- Thai and British -- will be discussed in the debate as well.

http://english.cri.cn/6966/2011/03/15/2681s626347.htm

Xinhua - March 15, 2011

[housepainter]

No thoughts of the health costs or implications then of smoking per se?

Thought not.

Actually, let's be accurate here; health costs are minimal as all the smokingt related illnesses are ignored anyway by the wonderful Thai health Service that abandons its non paying public patients to a 30 baht service. That wouldn't buy a new scalpel blade to rip open your throax and go in search of the rotting blackened tar filled lungs anyway.

Minor correction. Under PM Surayud the 30-baht universal healthcare program was made completely free.

Major correction: it abandons its people to 30 baht's worth of treatment.

Bumrungrat is for tourists and rich fee paying or insurance priviledged Thais. The same is said for any major hospital in any major city [major city!] outside of Bangkok. The proletariat are left to the underfunded resources of third and fourth class hospitals that can not provide the standard of treatment required. For example, even the military or civilians are quickly transferred for further burns treatment as the local hospital manages to put a band aid on it. A 30 baht max band aid.

But it takes thye attention of the Press or Royal intervention to have better resources provided by a better equipped hospital. and that can not serve a populace.

[rubl]

Major correction: it abandons its people to 30 baht's worth of treatment.

Bumrungrat is for tourists and rich fee paying or insurance priviledged Thais. The same is said for any major hospital in any major city [major city!] outside of Bangkok. The proletariat are left to the underfunded resources of third and fourth class hospitals that can not provide the standard of treatment required. For example, even the military or civilians are quickly transferred for further burns treatment as the local hospital manages to put a band aid on it. A 30 baht max band aid.

But it takes thye attention of the Press or Royal intervention to have better resources provided by a better equipped hospital. and that can not serve a populace.

From wikipedia:

"Healthcare policies

Thaksin initiated two key healthcare policies: subsidized universal health care and low-cost universal access to anti-retroviral HIV medication (ARVs). Thaksin's 30-baht/visit universal healthcare program won the applause of the general public, but was criticized by many doctors and officials.[18][19] Prior to the program's introduction, a large portion of the population had no health insurance and limited access to healthcare. The program helped increase access to healthcare from 76% of the population to 96% of the population.[20] The program also increased workloads for healthcare employees, and caused many doctors to switch to higher paying careers. It has been criticized for being underfunded. The program led some hospitals to seek alternative sources of income, leading to a boom in the medical tourism industry, with 1.3 million foreign patients earning Thailand 33 billion THB (approx. 800 million USD) in 2005."

http://en.wikipedia.org/wiki/Premiership_of_Thaksin_Shinawatra

Another interesting article "Universal Coverage In The Land Of Smiles: Lessons From Thailand’s 30 Baht Health Reforms

David Hughes and Songkramchai Leethongdee, 2007"

http://content.healthaffairs.org/content/26/4/999.full

Edited March 16, 2011 by rubl