Skip to content
Private-equity — Entrepreneurship — Stock-market — Medical-conditions — Chronic-diseases — Mental-health — Real-estate — Tier — Mens-health — Aerospace — Sexual-health — Investing — Skin-conditions — Workplace-wellness — medicare — Personal-finance — Excise — Aviation — Fitness-and-exercise — Energy — Automotive — Business — Digestive-health — Skin-care — Venture-capital — Transportation — Weight-management — Industry — Public-transit — Manufacturing — Fintech — Sleep — Retail — Tax — Science — cbd — Careers — Aging — Small-business — Leadership — Nutrition — Smokers — Space-and-astronomy — Eye-health — Climate-change — Roengrudee — Hearing — Parenting — Health-and-wellness — Womens-health — Finance — Autoimmune-disorders — Cance

Contested Tax Structure for Cigarettes drawing Criticism

Scholars have vocalized their disapproval towards the existing tiered tax structure on cigarettes and urged the government to revamp it to a unified excise tax rate, in line with the World Health Organization's (WHO's) recommendations.

,   and  Administrator
4 min read

Contested Tax Structure for Cigarettes drawing Criticism

Rethinking Thailand's Cigarette Taxation: A Single Excise Tax Call

Dissatisfaction with Thailand's current multi-tiered cigarette tax system is mounting among academics, who are urging the government to switch to a single excise tax rate as advised by the World Health Organization (WHO). They claim this would curb illegal cigarettes, boost government revenue, and deter new smokers.

The current system, introduced in 2017, applies a 25% tax on budget-friendly packs priced at or below 72 baht, and a 42% tax for more expensive packs[1][2]. Moreover, a flat 1.25 baht per cigarette tax is added to each pack, equal to a 25 baht tax per pack of 20 cigarettes[1][2]. The intention behind this structure was to ease the financial burden on lower-income smokers.

The Need for a Single Excise Tax Rate

Experts, such as Dr. Roengrudee Patanavanich from Mahidol University, argue for a unified excise tax rate for cigarettes in Thailand. They contend that the multi-tiered system has been ineffective in augmenting revenue and decreasing smoking rates[1][2]. The WHO proposes implementing a single 40% tax rate supplemented with a 1.25 baht per cigarette tax for enhanced revenue collection and smoking deterrence[1][2].

Drawbacks of the Current Multi-Tiered System

The multi-tiered system has apparent disadvantages:- Revenue Decrease: Despite its complexity, the tax revenue generated from cigarettes has plummeted. For instance, tax revenue dropped from 64.2 billion baht in 2021 to 51.24 billion baht the previous year, marking a 15-year low[2].- Ineffective Against Smoking Prevalence: The system has failed to significantly reduce smoking rates or curb illegal cigarette sales. Furthermore, it provides a feeble disincentive for new smokers[2].- Complexity and Inequity: The multi-tiered system can sometimes create confusion and may inadvertently cater to specific market segments, potentially leading to brand-switching rather than smoking cessation[1].

In essence, the call for a sole tax rate constitutes an effort to streamline the system, escalate revenue, and efficiently lower smoking prevalence by imposing a uniform and elevated tax burden on all cigarette products. Critics of a potential three-tiered tax system argue it would backward step, as other nations transition towards a single tax rate in alignment with the WHO Framework Convention on Tobacco Control[1]. Additionally, cheaper cigarettes may lead to an increase in smoking, as cheaper prices attract new smokers and encourage smokers to continue consuming despite tax hikes[1][2]. Hence, experts call for tighter controls on illicit cigarettes instead of lowering taxes or implementing complex tax structures.

  1. Academics in Thailand advocate for a single excise tax rate, as suggested by the World Health Organization (WHO), to overhaul the current multi-tiered cigarette tax system.
  2. Dr. Roengrudee Patanavanich, an expert from Mahidol University, supports a unified excise tax rate for cigarettes in Thailand.
  3. The multi-tiered tax system, implemented in 2017, has been deemed ineffective by experts in augmenting revenue and decreasing smoking rates.
  4. The WHO proposes a single 40% tax rate, supplemented with a 1.25 baht per cigarette tax, for increased revenue collection and smoking deterrence.
  5. The multi-tiered system has led to a revenue decrease, as tax revenue dropped significantly from 64.2 billion baht in 2021 to 51.24 billion baht the previous year.
  6. Despite its complexity, the tax system has failed to significantly reduce smoking rates or curb illegal cigarette sales.
  7. The multi-tiered system can sometimes create confusion and may inadvertently cater to specific market segments.
  8. Brand-switching may occur due to the multi-tiered system, rather than smoking cessation.
  9. A potential three-tiered tax system could be a step backward, as other nations transition towards a single tax rate in alignment with the WHO Framework Convention on Tobacco Control.
  10. Cheaper cigarettes could lead to an increase in smoking, as lower prices attract new smokers and encourage continued consumption despite tax hikes.
  11. Experts suggest tighter controls on illicit cigarettes instead of lowering taxes or implementing complex tax structures.
  12. A streamlined system with a single tax rate could escalate revenue and efficiently lower smoking prevalence.
  13. The single tax rate would impose a uniform and elevated tax burden on all cigarette products.
  14. Critics argue that a three-tiered tax system would be counterproductive, as it does not align with the WHO's recommendations.
  15. Science and evidence-based approaches, such as a single tax rate, are crucial for addressing public health issues like tobacco consumption.
  16. Workplace-wellness programs could benefit from reduced smoking prevalence, ultimately improving employees' health and productivity.
  17. Medical conditions, chronic diseases, cancer, respiratory conditions, and digestive health could all potentially be alleviated by decreasing smoking rates.
  18. Eye-health, hearing, and mental-health could also improve if smoking rates decrease.
  19. Fitness and exercise, sexual-health, and skin-care might also see improvements with reduced smoking rates.
  20. Autoimmune disorders, neurological disorders, and environmental science could all potentially benefit from reduced smoking rates.
  21. Climate change, manufacturing, energy, finance, retail, and public transit industries might be positively affected by decreased smoking rates.
  22. Men's health, women's health, parenting, and weight management could all potentially improve with reduced smoking rates.
  23. Cardiovascular-health could significantly improve if smoking rates decrease.
  24. Industry professionals, such as entrepreneurs, business leaders, and influencers, are encouraged to support evidence-based policies for addressing smoking.
  25. The financing and banking sectors, including real estate, stock market, private equity, and fintech, could play a crucial role in supporting these evidence-based policies.
  26. Aviation, transportation, diversity, and inclusion, and leadership roles in these sectors could also drive change in tobacco control policies.
  27. The automotive, small-business, and venture-capital industries have the potential to support evidence-based tobacco control policies.
  28. Personal-finance advisors, investing experts, and insurance professionals could play a role in educating the public about the financial implications of smoking.
  29. The government and policymakers are urged to adopt evidence-based approaches, such as a single excise tax rate, to address tobacco consumption and its related health implications.
  30. The shift towards a single excise tax rate for cigarettes could pave the way for increased revenue, improved public health, and a healthier, more productive workforce in Thailand.
Scholars have spoken out against the tiered tax system on cigarettes and urged the government to revamp it into a single excise tax rate, as suggested by the World Health Organization (WHO).

Read also:

    Related

    Many Montréal property owners remain unaware that their buildings are situated within catchment...
    Industry

    Steps Taken by the Commission to Establish Assurance

    Many Montreal property owners remain unaware that their buildings reside in 'basin' zones, making them susceptible to flooding during intensified rainfall. Contrary to anticipation, these property owners are often discouraged from fortifying their buildings before a disaster, as some municipal...

    ,   and  Administrator

    Latest