Network against CDC plan on 'sin' taxes

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TAXATION
Network against CDC plan on 'sin' taxes
Olarn Lertratdamrongkul,
Kasamakorn Chanwanpen
The Nation



BANGKOK: -- THE PEOPLE'S Network yesterday objected to the Constitution Drafting Committee (CDC)'s revised plans about "sin" taxes as a source for their direct funding.

The proposed change to Article 190 of the draft charter concerned the Thai Health Promotion Foundation and Thai PBS TV station and has caused anxiety among the groups.

Many feared that to end funding with the so-called sin taxes collected from the sale of alcoholic beverages and cigarettes would leave the agencies too much under government influence.

The two organisations and the National Sports Development Organisation wish to continue receiving direct funding from sin tax or tax collected from cigarette and liquor sales.

The network's representative, National Legislative Assembly member Monthien Boontan, submitted a letter of objection to CDC deputy chairman Manit Suksomjit at Parliament yesterday.

Monthien based his objections on: A lack of public participation in this so-called "public matter"; national loss of financial benefits from the cancellation of sin taxes; the excuse of insufficient central budget was inappropriate because the funds obtained by the agencies from the sin taxes was only 0.3-0.4 per cent of the national budget; such cancellation of sin taxes - which were collected in addition to excise tax - would only benefit the cigarette and alcohol industries; and the charter was supposed to prioritise citizens' benefits, but it seemed aimed at destroying the social mechanism. Manij replied there were misunderstandings about this charter change by the CDC.

The issue was not cancellation of the taxes, but the need to ensure transparency in budget spending.

Charter drafters would discuss the revised draft charter and the sin taxes on August 10-11, said CDC spokesperson Navin Damrigan.

At the CDC meeting yesterday, Navin said the panel would concentrate only on the spirit of the Constitution. If other issues arose and needed further deliberation, they would be taken up on August 10-11.

On Tuesday, CDC spokesman Kamnoon Sidhisamarn revealed the committee would review the amendment, believing there was a misunderstanding the funding would affect the fiscal budget - when actually the levy collected was on top of taxes paid on sales of "sin" products.

Source: http://www.nationmultimedia.com/national/Network-against-CDC-plan-on-sin-taxes-30266014.html

-- The Nation 2015-08-06

[sawadee1947]

"sin" taxes

they might raise taxes in 'massage parlor" shops as well. very good income...