Hike In Excise On Cigarettes And Liquor Backed: Thailand

[Exsexyman]

New cigarrette price in 7-Eleven.

LM 90 Baht / pack - up from 58 Baht / pack. A rise of 32 baht or ~ 55% increase in cost.

Marlboro 90 Baht / pack - up from ( Im not 100% sure ) 65 baht / pack. A rise of 25 baht or ~ 38% increase in cost.

The 7-Eleven I just visited was located in Rawai, Phuket.

Just been to 7-11 in Jomtien. LM increased from 58 baht to 66 baht, an increase of 8 baht. It would appear that you are being royally ripped off in Phuket!

[Exsexyman]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

Smoking is a horrible habit that is a. much more addictive than drinking b. much more likely to causes serious health issues and c. costs the government a hell of a lot in medical treatment, from everything from general lung conditions to cancer. Add to that the effect of passive smoking and there is a huge reason to ban it/get rid of it.

It should be banned, I hate smoking and when other people smoke it affects me. When people drink it doesn't affect others.

"When people drink it doesn't affect others"? You mean apart from all the people killed or maimed by drunk drivers, or beaten up or stabbed to death by drunks in bars! Get real!

[Tanlic]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

Currently nobody in Thailand is making illegal "rot gut" as the legal white rum is produced by the giants like "Thai Bev" and sold at rock bottom prices in any supermarket, just take a look at the shelves!

This is too risky nowdays to make alcohol without license in Thailand...

Are you telling me Chang actually have a license for their draft beer? must be easy to get one

[Maestro]

I have deleted off-topic posts about "other recreational drugs", Iran, ear medicine.

[OzMick]

New cigarrette price in 7-Eleven.

LM 90 Baht / pack - up from 58 Baht / pack. A rise of 32 baht or ~ 55% increase in cost.

Marlboro 90 Baht / pack - up from ( Im not 100% sure ) 65 baht / pack. A rise of 25 baht or ~ 38% increase in cost.

The 7-Eleven I just visited was located in Rawai, Phuket.

Just been to 7-11 in Jomtien. LM increased from 58 baht to 66 baht, an increase of 8 baht. It would appear that you are being royally ripped off in Phuket!

Understandable. Phuket has B300/day minimum wage, Chonburi does not (yet). Something to look forward to.

[Barin]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

Currently nobody in Thailand is making illegal "rot gut" as the legal white rum is produced by the giants like "Thai Bev" and sold at rock bottom prices in any supermarket, just take a look at the shelves!

This is too risky nowdays to make alcohol without license in Thailand...

Are you telling me Chang actually have a license for their draft beer? must be easy to get one

Chang beer is produced by Thai Bev, the largest alcohol producer in Thailand. The maker of Sang Som and cheap Ruang Khao.

Of course they do have a license, they have 5 or 6 factories in various parts of Thailand including Khon Kaen and Nongkhai.

Obtaining a license is not easy.

Actually this is more easy for a big factory than a small factory.

Edited August 22, 2012 by Barin

[peterdk]

New cigarrette price in 7-Eleven.

LM 90 Baht / pack - up from 58 Baht / pack. A rise of 32 baht or ~ 55% increase in cost.

Marlboro 90 Baht / pack - up from ( Im not 100% sure ) 65 baht / pack. A rise of 25 baht or ~ 38% increase in cost.

The 7-Eleven I just visited was located in Rawai, Phuket.

Just been to 7-11 in Jomtien. LM increased from 58 baht to 66 baht, an increase of 8 baht. It would appear that you are being royally ripped off in Phuket!

Understandable. Phuket has B300/day minimum wage, Chonburi does not (yet). Something to look forward to.

I blame the guy/girl with the calculator...

Lack of leadership and communication from the top down - so I guess some of the shops just add plenty to be safe - that is until someone

powerfull wakes up and tells them what to do..

Edit : And that someone has aparently woken up.

LM is now 66 baht / pack in that 7-Eleven shop.

However Marlboro is still 90 baht a pack - increase 12 baht over yesterday. It was 78 baht I was told.

That still seems wrong, so I expect that price to be adjusted down to a maximum 8 baht increase as stated by the OP.

Edited August 22, 2012 by peterdk

[Maestro]

Absolute madness that they tax it on a calculation of pure alcohol per litre.

?

Taking the pure alcohol is the only (and standard) way of doing it sensibly.

it is the alcohol that is taxable, not the other ingredients that go into making the drink.

Thailand's excise tax on alcohol is made up partly of a tax on the value of the product (ad valorem) and partly on the content of pure alcohol. I assume that the ad valorem part is calculated on the ex-factory price for the local product, on the CIF cost cost plus import duty plus VAT for the imported product – correction by somebody in the know is welcome.

[ozziebloke]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

The plain packaging is more designed to deter young people taking up smoking not necessarily trying to make current smokers to quit! And the law that Tasmania is trying to bring in is like prohibition and it would restrict persons that are born after the year 2000, Would make it ilegal to purchase tobacco products. So there targeting kids that are at the age of eleven now and kids in the future

[necronx99]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

The plain packaging is more designed to deter young people taking up smoking not necessarily trying to make current smokers to quit! And the law that Tasmania is trying to bring in is like prohibition and it would restrict persons that are born after the year 2000, Would make it ilegal to purchase tobacco products. So there targeting kids that are at the age of eleven now and kids in the future

i think it's to make it impossible for them to serve you inside of 10 minutes, a delaying tactic.

It's already bad enough with all the gigs hidden in unlabled drawers and the designated counter crap.

[thaikahuna]

Why is this government too blind, or should I say stupid, to see that if theyimposed a license fee and income taxes on every damned street vendor, the country would be flush in cash in less than a year.......................

.................oooops, my bad. I forgot, tea money.

[ozziebloke]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

The plain packaging is more designed to deter young people taking up smoking not necessarily trying to make current smokers to quit! And the law that Tasmania is trying to bring in is like prohibition and it would restrict persons that are born after the year 2000, Would make it ilegal to purchase tobacco products. So there targeting kids that are at the age of eleven now and kids in the future

i think it's to make it impossible for them to serve you inside of 10 minutes, a delaying tactic.

It's already bad enough with all the gigs hidden in unlabled drawers and the designated counter crap.

Yes probably a very annoying thing to current smokers. But anything to try and stop kids taking up the habit can only be a good thing i think

[F1fanatic]

I bought a carton of cigs (10 packs) today and the shop-owner told me the price had increased.

Whereas I used to pay 550(? or thereabouts), this time it was a little over 600 bht.

Sorry, I wasn't paying that much attention as I hadn't heard about the tax increases, so just vaguely thought that's a fairly hefty increase (assuming it was a supplier increase)...

[necronx99]

Yes probably a very annoying thing to current smokers. But anything to try and stop kids taking up the habit can only be a good thing i think

I don't think thats the aim really, if they wanted that they would just force tobacco companies to give you a pack of nicorettes with each pack.

[Banzai99]

I see that yesterday's shoot from the hip thread "Shock Rise On Imported Alcohol by 400 baht a litre" that generated loads of hits and 11 pages of comment came to a sticky end after it was revealed that there is actually no change in the excise duty. Nice one.

Ridiculous misleading headlines generate income.

[ozziebloke]

Yes probably a very annoying thing to current smokers. But anything to try and stop kids taking up the habit can only be a good thing i think

I don't think thats the aim really, if they wanted that they would just force tobacco companies to give you a pack of nicorettes with each pack.

That would be an initiative! And anything to try and stop kids taking up the habit can only be a good thing

[Banzai99]

So it seems in Rawai, Phuket at least, that it would be stupid to purchase cigarettes at 7-Eleven.

I think it's stupid to purchase cigarettes, period.

[webfact]

Govt raises alcohol and tobacco taxes

BANGKOK, 22 August 2012 (NNT) - The Excise Department revealed that the Cabinet has agreed to raise taxes on alcohol and tobacco. As a result, the Excise Department expected to see an increase in its revenue by 10 billion baht each year.

The Cabinet has given the approval to the request of the Finance Ministry to increase taxes on alcohol and tobacco, effective since yesterday. As a result, taxes of 8 brands of tobaccos have been raised by 6-8 baht per pack. Tax rates for blended liquor have been adjusted up to 120 baht per litre, imported whisky is taxed at 400 baht per liter.

Excise Department Director-General Benja Louichareon stated that the adjustment will result in an increased revenue collection by 10 billion baht per year.

Meanwhile, Mr. Thaksaphon Thamarangsi, Director of the Center for Alcohol Studies has praised the goventment over the decision to increase taxes on alcohol and tobacco. He said it is the most productive tool to reduce the problems caused by alcohol and tobacco. However, Mr. Thaksapon added that the prices of alcoholic beverages in Thailand are only half the price of those in foreign countries.

-- NNT 2012-08-22

[robsamui]

Why is this government too blind, or should I say stupid, to see that if theyimposed a license fee and income taxes on every damned street vendor, the country would be flush in cash in less than a year.......................

.................oooops, my bad. I forgot, tea money.

Actually so true - what happens in Thailand is what I think of as "desperation taxing". As in " . . . we just can't control the tens of millions of people who are not declaring or paying taxes so we'll bash the easy ones instead".

I've been here a while and have got to know dozens of Thai people, many with their own businesses. Hardly any of these declare or pay taxes, except the ones with resorts or prominent businesses but they fiddle the books instead and end up hardly paying any taxes too.

Yet another example of a nation with up-to-the-minute first-world laws (for all the world to see and marvel at) but a third-world administration to enforce those laws.

R

[market trader]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

Smoking is a horrible habit that is a. much more addictive than drinking b. much more likely to causes serious health issues and c. costs the government a hell of a lot in medical treatment, from everything from general lung conditions to cancer. Add to that the effect of passive smoking and there is a huge reason to ban it/get rid of it.

It should be banned, I hate smoking and when other people smoke it affects me. When people drink it doesn't affect others.

" When people drink it doesn't affect others" Well it sure affected me several years ago when a drunk driver rammed into my car.

[Semper]

New cigarrette price in 7-Eleven.

LM 90 Baht / pack - up from 58 Baht / pack. A rise of 32 baht or ~ 55% increase in cost.

Marlboro 90 Baht / pack - up from ( Im not 100% sure ) 65 baht / pack. A rise of 25 baht or ~ 38% increase in cost.

The 7-Eleven I just visited was located in Rawai, Phuket.

Why don't you go local? Wonder is only up 8 Baht, from 42 to 50 Baht.

[jambodave]

I've never lived upcountry, so I can't profess to be knowledgeable on the drinking habits of Pheu Thai's main constituency....

But I'm curious: what portion of the distilled liquor consumed by those folks is likely the locally (village) made rot gut that presumably escapes all taxation vs. what portion is actually the commercial and taxed stuff purchased through stores???

Simple answer NONE.

[chooka]

So it seems in Rawai, Phuket at least, that it would be stupid to purchase cigarettes at 7-Eleven.

I think it's stupid to purchase cigarettes, period.

Oh umm ok next time I will just steal a pack. Probably need to anyway if the prices keep going up.

[Spellforce]

I'm not surprised that the staff of one 7-eleven was not able to apply the new prices the first day.

I've readed all the posts of this thread, and if my understanding is correct:

- Beers: no change

- Samsung/Blend: +14 bahts (bottle 700 ml)

- Cigarets: +8 bahts per pack (whatever the brand)

Concretely in a 7-eleven:

Samsung bottle from 272 to 286 bahts

LM cigaret pack from 58 to 66 bahts

[Billmont]

Another "hidden" tax imposed mainly on the poor who can least afford it.

What are you talking about? How is it more hidden than any other tax? And it's announced in all the papers and on TV; what more could they possibly do?

Also, the poor just got a big raise in minimum wage, and money is also thrown at rice farmers. In return, they (along with everybody else) can pay a bit extra for non essential luxuries like liquor and cigarettes, which by the way also cause health issues that the government largely pays for when it comes to the poor. So it makes PERFECT sense, especially if you subscribe to the more social-democratic part of the political spectrum.

I agree. The increase may appear harsh but governments worldwide have trouble filling blackholes and extra revenue must be obtained. While a manority may consider cigarettes and alcohol as essential items the majority still consider these items a luxury and you have a choice to buy or not. If a tax was raised on road fuel then it would effect everybody as transport cost would increase food costs and effect the poor unfairly. I understand that the last increase was 3 years ago, in Europe and the UK in particular such price increases are annual and more severe. Another plus for those of us who reside in Thailand.

[morpheusatloppers]

Let me swing in here - the figures on the new cigarette tax make no sense to me.

In my experience, there are a number of brands available in Thailand - but they are all made locally, under the auspices of the Thailand Tobacco Monopoly, right?

Thus "name brands" like Marlboro and L&M are simply for those who don't mind paying 80 baht a pack for a "name" - while non-name brands like "SMS" (unsmokable) "Shoot" (perfectly fine: but for some reason, no longer available) and "Wonder" (my poison, following the discontinuation of Shoot) cost around 30-40 baht.

So if the old tax rate (shown at the top of this piece) has risen from 85% to 87% "by value" - how does that translate to 6-8 baht per pack? (Never mind the 30 baht plus, charged by rip-off artists in Phuket).

I only passed "O" level maths, but a two percent rise on 40 baht is 80 satang (less than ONE baht). And that is the price of the whole pack. If the tax RATE is 85 or 87%, then surely the rise would be less than half THAT?

Oh, and this is a straightforward QUESTION. I am an unapologetic smoker who grew up when everyone from the Beatles to James Bond smoked, and allowed myself to become addicted to nicotine. My smoke harms no-one (the dangers of second-hand smoke are a MYTH) while the piss-heads who complain about it kill COUNTLESS people thanks to drunken rampages and driving.

So I repeat: how does a rise of two percent on an 85% tax on something that retails at 40 baht - translate to an overall rise of 6-8 baht? Anyone??

[Ferangled]

"For cigarettes, the hike will see an increase of between Bt6 to Bt8 per packet of eight local and imported brands, Benja said.

Cigarette hike 2% on average"

Bt6 to Bt8 per packet is more like 10-15%. Apparently this comes into force today - anyone been to the shops for some smokes? What was the price increase and brand? I am in Hong Kong for a few days, just interested to know how much I will have to pay when I get back.

And please don't turn this into another smoking haters thread, there are plenty of those where you can go and procrastinate.

Australia increase the taxes on cigarettes/booze every year saying it will reduce the number of people smoking/drinking. Didn't work in all the previous years people still smoked and consumed alcohol. Now they have come up with a world 1st initiative to stop people smoking, plain packaging, cigarette companies can no longer put thier brand on packets which must all be the same plain pack. Apparently this will make people kick the habit. Now we have the Australian State of Tasmania with a new initiative to ban the sale of tabacco products..

Tasmania in bid to phase out tobacco sales - http://news.ninemsn....t-tobacco-sales

A little like phasing in Prohibition, people will still smoke and drink and the only thing it will do is benifit the black market. A lot of cheap booze and chop chop tobacco will be sold under the counter at less cost to the consumer.

Smoking is a horrible habit that is a. much more addictive than drinking b. much more likely to causes serious health issues and c. costs the government a hell of a lot in medical treatment, from everything from general lung conditions to cancer. Add to that the effect of passive smoking and there is a huge reason to ban it/get rid of it.

It should be banned, I hate smoking and when other people smoke it affects me. When people drink it doesn't affect others.

Please kindly tell that to the recently deceased Kiwi stabbed in a drunken rage by a Swede... drinking doesn't affect others, yeah, right-o...

How about all the battered wives and children given a few drunken goodnight slaps each night? Or the vast sums of money spent on those with alcohol related medical conditions?

And by the way, you breath in more harmful exhaust fumes daily than anything anyone has smoked near you. In fact I'd suggest you try the herbal variety it might help balance your perspective on life...

[webfact]

Increase of alcohol, cigarette taxes to cut consumption

BANGKOK, Aug 22 – The Cabinet’s decision to raise alcohol and cigarette excise taxes will help cut consumption and curb the influx of cheap cigarettes from neighbouring countries.

Excise Department Director-General Benja Louicharoen said after the tobacco excise duties on cigarettes were increased, that cigarette taxes rose to 87 per cent from 85 per cent based on the level of one baht per cigarette.

Applying the new tax rate based on volume, cheap cigarettes from neighbouring countries must pay more taxes by 10-13 baht per pack.

For alcoholic drinks, the excise tax on rice whiskey was increased from 120 baht per litre to 150 baht/litre based on alcohol content (100 per cent), so its production cost was raised by 5-7 baht per bottle.

The excise tax on blended liquor was raised from 300 baht to 350 baht/litre, so its production cost has been increased by 5-7 baht and the tax on brandy was up to a maximum 400 baht/litre, from 48 per cent to 50 per cent based on value.

The department is also studying applying a new excise tax rate on beer and wine as the existing maximum tax of 400 baht is considered low, taking into account the alcohol content.

It also doubled the annual license fee for wholesale and retail cigarette shops from 250 to 500 baht and 20 to 40 baht respectively.

The new excise tax rate will increase the department’s revenue by Bt13 million and excise collection is likely to reach its target of Bt425 billion.

The move was supported by Jadet Chaowilai, adviser to the Network of People affected by Alcohol and representatives from the youth network, who met Ms Benja today.

Mr Jadet said excise tax increase on cigarettes and alcohol will help cut alcoholic beverage consumption and smoking as well as reducing the number of new drinkers and smokers.

The network asked the department to raise excise taxes on beer and wine and to control violations of shops selling cigarettes and alcohol to persons under age 20.

It advised the department to draft a plan to counter the possible influx of alcoholic beverages when the Thai-Europe free trade agreement takes effect as Thailand imports 84 per cent of its liquor from Europe. (MCOT online news)

-- TNA 2012-08-22

[smotherb]

On a petty note, the Scots do not produce whiskey, I believe that is the Irish and Americans product.

Ummmm, yeah, ok....

http://en.wikipedia....i/Scotch_whisky

That attempt at humor really got you, eh? W-h-i-s-k-e-y, please note the 'e,' is not W-h-i-s-k-y, please note the lack of an 'e.'

[freedom4life]

I wonder how long it will be until they change the legislation that imposes a limit?

Someone has to pay for all the commitments. May as well be the revolting masses as this is the only tax they pay anyway

Are you complaining? We shouldn't pay taxes AT ALL. If you wish to, by all means..