Thailand’s Excise Department expects a new tobacco tax to raise the price of a pack of cigarettes by 6-8 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 solve four tobacco-related problems: Reduce the burden on the public health system, minimize impacts on tobacco farmers, maintain government revenue and control illegally imported and counterfeit cigarettes.
Since 2017, two tax rates have been imposed on cigarettes, namely 20 % for packs priced Bt60 or less and 40% for packs over Bt60. Many cigarette companies dropped their price to less than Bt60 to reduce the tax burden. The department has not yet said whether the new structure will be a single or double rate, only that the tax will be higher. (NNT)