Thailand Tobacco Monopoly sees 7 billion baht in lost revenue due to new excise tax
BANGKOK, 15 September 2017 (NNT) – Thailand Tobacco Monopoly is foreseeing a loss of 7 billion baht due to the new excise tax rate for tobacco, asking the government help.
Thailand Tobacco Monopoly Director Daonoi Suthinipaphan said the Cabinet has decided on a new excise tax calculation rate for cigarettes. Taxation will now be done on both a quantity basis at 1.20 baht per cigarette and a value basis divided further into 2 categories; packs less than 60 baht will be taxed 20 percent while packs more than 60 baht will be taxed 40 percent. She said the new rates have compelled cigarette makers to keep their packs below 60 baht.
While Daonoi admitted the higher retail cost that will result from the change could dissuade some smokers it could also lead to those with the habit to switch to more detrimental loose leaf tobacco or seek out smuggled brands. The monopoly also believes that despite its satisfaction of government policy to not stockpile cigarettes, retailers will likely not do the same.
It is expected that in 2018 the maker will lose 7 billion baht from its revenue due to the new tax rate. The monopoly is now requesting assistance from the state to weather the change.
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