Thai tobacco maker plans cheap cigarettes to offset new tax

[webfact]

Thai tobacco maker plans cheap cigarettes to offset new tax
NATTASUDA ANUSONADISAI, Associated Press
GRANT PECK, Associated Press

BANGKOK (AP) — Thailand's state tobacco company said Saturday that it would launch a new, cheaper brand of cigarettes to keep smokers from rolling their own or buying illegally imported untaxed ones due to higher prices from a recently imposed tax hike.

The plan announced by the Thailand Tobacco Monopoly was denounced by anti-smoking activists who just weeks ago applauded the tax hike as a useful deterrent to smoking.

Daonoi Suttiniphapunt, director of Thailand Tobacco Monopoly, said the new brand, which will be slightly smaller in diameter than standard brands, will cost about 40 baht ($1.12) a pack and be launched on April 1. Other brands now range from about 48 to 130 baht ($1.34 to $3.64) a pack, she said.

"We are concerned that smokers will choose other alternatives that will severely harm their bodies, such as low-quality hand-rolling tobacco," she said in a telephone interview. "They don't use good quality material, they use no filters and there is a lot more residue. ... They might put filters in, but in the process ... there is usually more residue such as tar and nicotine than in legal cigarettes."

According to Daonoi, there are 10.5 to 11 million smokers in Thailand.

"Those who have financial limitations, they will go to cheaper and low-quality products because they have no choice," she said. "Quitting cigarettes is not easy."

Dr. Ulysses Dorotheo, a program director for the Southeast Asia Tobacco Control Alliance, scoffed at the reasoning for producing cheaper cigarettes.

"All tobacco products are harmful to health regardless of their form or source, whether roll-your-own or manufactured cigarettes, whether legal or illicit," he said in an email. "It is a farce to believe that tobacco companies are interested in protecting the health of smokers by promoting the access and use of cheap legal cigarettes."

"Producing cheap cigarettes that are affordable to the poor and the young is a strategy common to all tobacco manufacturers, whether private or state-owned, to keep tobacco products affordable in order to keep poor people addicted, entice young people to start smoking, and ultimately to maintain industry profits," he said.

His organization previously praised Thai authorities for increasing the price of domestically produced cigarettes this month by 5 to 10 baht (14 to 28 cents), saying it was a good example of trying to improve public health through tax policy.

TTM's Daonoi said that after the recent tax hike of about 3 percent, tobacco sales fell and the market size shrank by more than 2 percent.


-- (c) Associated Press 2016-02-29

[vogie]

"We are concerned that smokers will choose other alternatives that will severely harm their bodies"

Good to see that the tobacco companies are looking out for the health of their customers and not thinking about themselves. But I've always said, if you're going to kill yourself you might as well do it cheaply.

[doremifasol]

"We are concerned that smokers will choose other alternatives that will severely harm their bodies" ........

You are so pathetic...............

Edited February 28, 2016 by doremifasol

[lostinisaan]

Is it already April's Fools Day?

[leeneeds]

Disgusting blight on governments around the world who let the tobacco industry keep pushing their products, blatantly showing no regard for the health of those already hooked to inducing the younger generation to a life of addiction, Knowledge means nothing if you don't act , Sadly no positive action taken here ,

hang your head in shame shame Daonoi ,

Thai youth vs money, I will take the money ,

[Pib]

The only health the Thailand Tobacco Monopoly is concerned about is the health of their profits.

[Bkungbank]

I totaly disagree with the idea of making cheap as many school age children are buying it if the price cheap in some country a box goes up as 5 USD.

[Pib]

Oh, by the way, everyone knows the Thailand Tobacco Monopoly is a state-owned enterprise, right? It's a great little revenue generator for the government, both in sales and being a tax cow.

The govt is so hypocritical in raising tax on cigarettes to reduce consumption while at the same time producing a new brand to raise (or at least maintain) cigarette consumption through its state enterprise called the Thailand Tobacco Monopoly.

List of Thailand Government State owned Agencies

http://www2.mof.go.th/state_enterprises.htm

[Valentine]

Disgusting. The amount of money lost by less people smoking would be more than offset by the savings in health care.

[honoluludave]

The only thing Thai Tobacco is concerned about is falling profits and loosing customers. Got to make it cheaper for the next generation of customers. One of the things that help me quit WAS the high price of cigarettes in Hawaii.

[Srikcir]

Thailand's state tobacco company said Saturday that it would launch a new, cheaper brand of cigarettes

This is so wrong on at least two counts:

- The Thailand Tobacco Monopoly is a state enterprise which manufactures and distributes tobacco products. The state knowingly produces a harmful unhealthy and deadly product! Yet it pretends to attempt to reduce Thai smoking habits. In reality the national cost of healthcare for tobacco related illnesses and deaths outweigh the tax revenues it receives, part of which fund the state's anti-smoking campaigns!

- Launching a cheaper brand of cigarettes will attract more smokers who are likely young people and increase smoking among adults. The state thereby will contribute to greater tobacco illnesses and deaths.

This is a flawed policy. It's akin to defending against illegal firearms by making cheaper firearms available. The state should be putting its funds towards better law enforcement and prosecution.

But what's the profit in that?

[lostinisaan]

The only thing Thai Tobacco is concerned about is falling profits and loosing customers. Got to make it cheaper for the next generation of customers. One of the things that help me quit WAS the high price of cigarettes in Hawaii.

You were high on Hawaii?.....

Edited February 29, 2016 by lostinisaan

[lostinisaan]

I totaly disagree with the idea of making cheap as many school age children are buying it if the price cheap in some country a box goes up as 5 USD.

In Germany 5 Euros...around 200 baht a pack.

[condobrit001]

I totaly disagree with the idea of making cheap as many school age children are buying it if the price cheap in some country a box goes up as 5 USD.

In Germany 5 Euros...around 200 baht a pack.

That is cheap. In the UK reckon on around nine pounds for a pack of 20 (450THB). As a result cigarette smuggling is rampant in the UK.

I would increase the price to twenty pounds for a pack of 20, (1000THB) and ration smokers to four packs a week. The same should be done in Thailand.

Edited February 29, 2016 by condobrit001

[Amusements]

I totaly disagree with the idea of making cheap as many school age children are buying it if the price cheap in some country a box goes up as 5 USD.

In Germany 5 Euros...around 200 baht a pack.

You should see the price of a pack in the UK http://www.tesco.com/groceries/product/details/?id=255732198 £9.55 from a supermarket, which is usually cheaper than a corner shop or vending machine.

[worgeordie]

The Government increased the tax to try and deter people from smoking,

then the Government Tobacco company,plans to make cheaper cigarettes,

so sales increase !,typical Thai logic,some of the things that happen here

are just unbelievable.

regards Worgeordie

[teacherpaul]

Why has no-one mentioned vaping (e cigarettes) as a healthy, cheaper alternative to smoking? Wake up guys! This is the 21st century. Vaping is the way forward!

[sanukjim]

Tobacco is grated in 5 categories.The numbers 1 and 2 are normally mixed for good quality cigarettes with the very best tobacco used in the very costly cigarettes.These first two categories are normally found in American cigarettes ( That are Made in America).The American Tobacco Company sends this top mixture to other countries for their top and good brand of cigarettes>Number 5 is used for snuff and chewing tobacco..The cigarettes bought here in Asia are mostly made with number 3 and 4 mixed.Even though the package may be of an American brand the tobacco is of poor quality.

[sanukjim]

Any adult in this day and age that are still smoking are in denial about the health hazarded it entails..Their silly arguments as to why they continue to smoke are just that, silly.Many years ago (in the 1950s) in Mexico the shops sold to tourist for a gimmick a pack of" Horse Shxt cigarettes" on the package it claimed "Not A Fart In A Car Load".You gave to friends bumming smokes one of these and he no longer ask you for a free smoke.Most people still smoking today proberly would not turn down one of these "Horse Shxt Cigarettes",I am sure..

[akampa]

money ,money ,money, blah blah blah

[bubblegum]

Price went up 15 bath. not a mere 3 %

[fakename]

At least the government understands that kids dont dont have money to buy expensive smokes, now if they can produce some cheap motor bikes, without the stupid safety features, turn signal, horn, lights breaks; then they can kill even more kids, and a few others!

[baansgr]

The proposed increase of 5-10 Baht didn't happen, increases were from 12-20, most incurred a 28% increase. Any wonder that people will seek cheaper alternatives.

[Rykbanlor]

I have quit my 17 year 20 a day habit. Clean since December 26th, so 2 months, but it isn't easy and I know that I will live with the cravings, possibly forever - albeit mental cravings, it doesn't lessen the fact that cigarettes are incredibly addictive.

Now when my government or any around the world, quite happily lets me buy all the cigarettes I want, but tells me that Weed is illegal, well, you know that kinda pisses me off.

I was a frequent pot smoker for many years, and that wasn't too difficult to knock on the head.

[DrTuner]

Pretty cool when you can make the rules and have monopoly. Jack up the prices to bleed current customers and introduce a low quality product at the same time to keep the new customers coming.

[DrTuner]

Why has no-one mentioned vaping (e cigarettes) as a healthy, cheaper alternative to smoking? Wake up guys! This is the 21st century. Vaping is the way forward!

It's too easy to make your own juices, no potential for profiteering. So ban it.

[lostinisaan]

I totaly disagree with the idea of making cheap as many school age children are buying it if the price cheap in some country a box goes up as 5 USD.

In Germany 5 Euros...around 200 baht a pack.

You should see the price of a pack in the UK http://www.tesco.com/groceries/product/details/?id=255732198 £9.55 from a supermarket, which is usually cheaper than a corner shop or vending machine.

Pot cheaper?

[Cats4ever]

I have often observed to people that being a smoker, these days, is regarded by many (see above contributions) as only slightly better than being an ISIS bomber.

I discourage any young people from smoking and expect there will be a day when there is no call for tobacco. In the meantime, I try and avoid areas where smoke may

interfere with others (although some people could outsmell a blood hound), I do not drop butts (whoever managed to get rid of non filter smokes may be responsible for some of the mess

the lazy mongrels leave around) and I try to be nice. I am in the home straight and I don't want to tell you how to live; perhaps you could examine your motives in telling me what to do.

[lostinisaan]

I totaly disagree with the idea of making cheap as many school age children are buying it if the price cheap in some country a box goes up as 5 USD.

In Germany 5 Euros...around 200 baht a pack.

Sorry, just Googled it and found the price from 2015, which is 5.60 Euro for 19 pieces in Germany. I'm trying to quit soon, my SMS went from 38 baht to 51. Enough is enough. I smoked ERA from Laos for many years, a carton for only 80 baht. But the guy moved to another province.

How much is going to Greece?

From a German website: The price includes 3.08 Euro tobacco and 0.89 euros VAT. The total tax share in this price range is 71%, while only 29% is held by the economy (manufacturers and retailers). The division of the economy share on manufacturers and retailers will vary between brands, average trading receive about one-third, the producers about two-thirds of this economic component. For disposal of the packaging, manufacturers have proposed 0.1544 cents per box.

Edited February 29, 2016 by lostinisaan

[razer]

There WILL NOT be competition for TTM !!!

Foreign companies ... get out.