Thailand’s excise department expects a new tobacco tax to raise the price of a pack of cigarettes by 6 to 8 baht from next month.
Department director general Lavaron Sangsnit said the department has proposed the new tobacco tax structure to the finance minister and expects Cabinet approval in time for the tax to be implemented on October 1st.
He said the new structure aims to address four tobacco-related issues: reducing the burden on the public health system, minimizing impacts on tobacco producers, maintaining government revenues, and controlling illegally imported and counterfeit cigarettes.
Since 2017, two tax rates have been imposed on cigarettes, namely 20% for packages of 60 Bt or less and 40% for packages over 60 Bt. Many cigarette companies have lowered their prices to less than 60 Bt. Bt to reduce the tax burden. The ministry has not yet specified whether the new structure will be single or double rate, only that the tax will be higher. (NNT)