Sport fund levy 'will force up price of liquor, smokes'

[webfact]

Sport fund levy 'will force up price of liquor, smokes'
THE NATION

CIGARETTE and liquor prices will likely increase due to operators being forced pay into the newly established Sport Fund.

In January the National Legislative Assembly passed the Thailand Sports Act mandating that the Sports Fund receive a 2-per-cent annual contribution from every cigarette and liquor exporter, importer and producer based on how much excise tax they pay. The Act is expected to come into effect this quarter.

"The contribution to the Sport Fund may cause the operators to push the cost to their customers by raising the retail price of cigarettes and liquor by 2 per cent," said a source at the Finance Ministry.

According to the ministry's data, the Excise Department collected around Bt200 billion in excise tax last year.

Of that amount, Bt76 billion came from taxes imposed on beer, Bt64 billion came from taxes on other liquor products and Bt61 billion came from cigarettes.

The Finance Ministry source said the total amount paid into the sports fund would be between Bt3-4 billion.

A Thailand Tobacco Monopoly source said the contribution to the fund would cause the state enterprise's production costs to rise by between Bt1-2 billion annually.

The source said that currently TMM was also required to contribute Bt1.6 billion to the Thai Health Promotion Foundation and Thai Public Broadcasting Services.

The new contribution would increase that figure to up to Bt2.8 billion a year compared to a Bt6 billion net profit.

"It was learnt that the Act will come into an effect by the end of this quarter. So, the Thailand Tobacco Monopoly will have to lift its retail cigarette prices," said Daonoi Suttiniphapunt, acting managing director of TTM.

She said TTM's Bt6 billion net profit was down from Bt7 billion in 2013 due to higher expenses from having to relocate its factory from Bangkok to Rojana Industrial Estate. She added that TTM planned to launch two new cigarette brands, focusing on general customers. The enterprise has a 76 per cent share of the domestic cigarette market.

Source: http://www.nationmultimedia.com/politics/Sport-fund-levy-will-force-up-price-of-liquor-smok-30254721.html


-- The Nation 2015-02-24

[bkkjames]

They should also go after the fat - of course because these taxes are aimed at getting people of their butts and do some exercise right towards a healthier lifestyle no?

Every pre-made sugar coated piece of crap found in your local convenience shop and super market should also face the same sorts of taxes IMO.

[shirtless]

Its another tax any way you spin it and the money will go anywhere but where its supposed to,

[Bluespunk]

"Sport fund levy 'will force up price of liquor, smokes''

Good. Might reduce consumption of both.

[maoro]

It sounds like the tax will be levied at the wholesale level. For retailers to maintain their margin the retail price would have to increase more than 2%.

[alant]

Its another tax any way you spin it and the money will go anywhere but where its supposed to,

Agree, funny how many people are pro tax and look to increase the tax burden on others, go after the fat I see. Tax the world.

[kaorop]

"Sport fund levy 'will force up price of liquor, smokes''

Good. Might reduce consumption of both.

what it might also do is burden children in families who will still find the money to buy their "hit"

a life long boozing, smoking 45 yrs old father of 3 isnt about to give up and take up a sport now is he?

it mostly means governments getting hooked on the new $ coming in.

[BudRight]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

Edited February 24, 2015 by BudRight

[robblok]

Its another tax any way you spin it and the money will go anywhere but where its supposed to,

Obviously in this case it will go straight into a sports fund... now that is not to say that then other subsidies towards that sports fund are cut and they are left with the same net result.

[robblok]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

I don't care but its nice they are financing a healthy lifestyle for others. Its a nice idea for sure.

[kaorop]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

you know, burdens on health care, family breakdowns, etc.

its double edge sword

personal freedom vs the public good

its not an easy one to manage

[Bluespunk]

"Sport fund levy 'will force up price of liquor, smokes''

Good. Might reduce consumption of both.

what it might also do is burden children in families who will still find the money to buy their "hit"

a life long boozing, smoking 45 yrs old father of 3 isnt about to give up and take up a sport now is he?

it mostly means governments getting hooked on the new $ coming in.

In those cases every penny is probably being spent on it already.

Edited February 24, 2015 by Bluespunk

[Bluespunk]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

I don't as long as they don't do it around me. This is more so with smoking I'll admit.

[BudRight]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

you know, burdens on health care, family breakdowns, etc.

its double edge sword

personal freedom vs the public good

its not an easy one to manage

The public is composed of individuals. Individual Liberty is good and should be more common.

Arguing that the liberty to make unhealthy choices is expensive to others is an argument against socialized medicine, not individual liberty.

[robblok]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

you know, burdens on health care, family breakdowns, etc.

its double edge sword

personal freedom vs the public good

its not an easy one to manage

The public is composed of individuals. Individual Liberty is good and should be more common.

Arguing that the liberty to make unhealthy choices is expensive to others is an argument against socialized medicine, not individual liberty.

Your right.. as long as your not on public healthcare.. and seeing that most of Thailand is.. its not a problem to punish unhealthy lifestyles. Else people with good health who would cost the system less would pay for those that drink and smoke and in general cost the country more.

Now most foreigners here have their own insurance but seeing as this is a Thai measure and we are of little consequence we should use the situation of Thais.

Now if this means the money is spend without corruption and such.. that is an other question.. but if we took that into account for any tax in Thailand.. then there would be no tax paid because corruption is endemic here.

[bassman]

Taxing imports or local sales might be prudent if the money ends up where it belongs. But why would you increase tax on exports, good way to kill jobs as the Thai products become uncompetitive.

[kelboy]

<deleted>

this place is getting worse,land of smiles,no land of fat.when i came you didn't see any fattys around

and now nearly all are fat and they are taxing everything.BUT A SPORT TAX i have never heard something

more rediculouse.they should tax the people who burn the land and kill the pigs at night. i think its cheaper in

the uk to drink,you can get 20 cans of beer 440ml for £13 650tb tell me where i can get that in thailand?

maybe they might start a sunny day tax and then we are all ----ed.

having said that i'm going for a beer.

[ratcatcher]

"A Thailand Tobacco Monopoly source said the contribution to the fund would cause the state enterprise's production costs to rise by between Bt1-2 billion annually."

A government desperately trying to stop people from smoking while at the same time plying them with cigarettes. Bizarre.

[IAMHERE]

"Sport fund levy 'will force up price of liquor, smokes''

Good. Might reduce consumption of both.

Not to be taken personally, please. Not a shot at you in particular.

Perhaps a tax on computer keyboards is in order ?

Edited February 24, 2015 by IAMHERE

[webfact]

Higher alcoholic drink and tobacco prices soon



BANGKOK: -- Alcoholic drink and tobacco prices will be higher by two percent possibly in March after Thailand Sports Act is announced in the Royal Gazette.

The sports bill was passed into law by the National Legislative Assembly (NLA) in January and is pending announcement in the Royal Gazette within 60 days.

Under the law, exporter, importer and producer of alcoholic drinks and tobacco are mandated to contribute 2% of their annual excise tax they pay to the sports fund.

The mandated contribution to the fund will be surely passed on by business operators to consumers by raising retail price.

It was expected that retail prices will be 3-5 baht higher.

The Excise Department collected around 200 billion baht in excise tax last year.

Breakdowns of the excise taxes were 76 billion baht from beer, 64 billion baht from other alcoholic drinks and 61 billion baht came from tobacco.

Therefore contribution to the sports fund would be about four billion baht annually.

A Thailand Tobacco Monopoly source said the contribution to the fund would cause its production costs to rise by between 1-2 billion baht annually.

Currently TTM was required to contribute 1.6 billion baht to the Thai Health Promotion Foundation and Thai Public Broadcasting Services (TPBS).

The new contribution will now amount to up to 2.8 billion baht a year compared to its six billion baht net profit.

TTM acting managing director Daonoi Suttiniphapunt said this would prompt it lift its retail cigarette prices.

TTM’s six billion baht net profit last year was down from seven billion baht in 2013 due to higher expenses from having to relocate its factory from Bangkok to Rojana Industrial Estate.

Source: http://englishnews.thaipbs.or.th/higher-alcoholic-drink-tobacco-prices-soon


-- Thai PBS 2015-02-24

[Stradavarius37]

I felt a great disturbance in the Force, as if millions of TVF barstool warrior voices suddenly cried out in terror and were suddenly silenced. I fear something terrible has happened.

[steelepulse]

For some reason I'm really skeptical that this money will actually make it's way into sports equipment and sports teachers. The money will get disappeared way before any benefit will come out of this new law.

[Time Traveller]

For some reason I'm really skeptical that this money will actually make it's way into sports equipment and sports teachers. The money will get disappeared way before any benefit will come out of this new law.

Those new army tanks and submarines don't pay for themselves.

[honoluludave]

And this is going to bring a lot of happiness to the Thai people???

[robblok]

For some reason I'm really skeptical that this money will actually make it's way into sports equipment and sports teachers. The money will get disappeared way before any benefit will come out of this new law.

That is the same for all taxes here in this country.. if effectiveness in spending taxes was deciding factor into taxing or not.. no tax should be levied here ever (and in a lot of other countries).

The idea is.. ok not if your an alcoholic or someone on a meager pension and you need your shot of beer.

But Thailand was never cheep beer wise (compared to most other countries) most guys came here for other things and now beer is taking up more of their money they have less to spend on those other things.

Nobody likes a price raise in things they use im no exception.

[Bluespunk]

"Sport fund levy 'will force up price of liquor, smokes''

Good. Might reduce consumption of both.

Not to be taken personally, please. Not a shot at you in particular.

Perhaps a tax on computer keyboards is in order ?

Fine by me.

[h90]

Its another tax any way you spin it and the money will go anywhere but where its supposed to,

Obviously in this case it will go straight into a sports fund... now that is not to say that then other subsidies towards that sports fund are cut and they are left with the same net result.

And the sport fund will have a few more management positions for friends and make purchases from companies that bribe.

I doubt that there will be a single Thai stop smoking and instead going running.

They could make imports of sport goods without duty or VAT free.

[h90]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

you know, burdens on health care, family breakdowns, etc.

its double edge sword

personal freedom vs the public good

its not an easy one to manage

The public is composed of individuals. Individual Liberty is good and should be more common.

Arguing that the liberty to make unhealthy choices is expensive to others is an argument against socialized medicine, not individual liberty.

And if you think it finish:

tax on sugar, tax on fat.....or even ban some food.

tax on dangerous sports. Forcing children to safe sports (it is done already)....

It will be a totalitarian system......Both Hitler and the communists had such ideas.....

[robblok]

Why the hell does anyone care if OTHER PEOPLE NOT YOU drink and smoke?

you know, burdens on health care, family breakdowns, etc.

its double edge sword

personal freedom vs the public good

its not an easy one to manage

The public is composed of individuals. Individual Liberty is good and should be more common.

Arguing that the liberty to make unhealthy choices is expensive to others is an argument against socialized medicine, not individual liberty.

And if you think it finish:

tax on sugar, tax on fat.....or even ban some food.

tax on dangerous sports. Forcing children to safe sports (it is done already)....

It will be a totalitarian system......Both Hitler and the communists had such ideas.....

Agree and disagree here.. in countries where there is a state funded healthcare the government should have the right to do stuff like this. Else the healthy are paying extra for the unhealthy.

If it was in a country where there was only private insurance then the insurance company could select on how healthy someone was and then people who have a healthy life get a discount.

Though I am not one that likes taxes.. I do see how this could (if implemented correctly and there is the problem) could benefit those that do live healthy. They would not be paying then for those alcoholics and overweight health hazards.

[clockman]

More tourists for Lao and Cambodia! Beer Lao is very good.