Cigarette excise tax to increase

[buksida]

Smokers will pay an additional 5-10 baht per pack after a new cigarette excise tax rise comes into effect at midnight Tuesday.

The cabinet on Monday agreed to the cigarette excise tax hike, which targets both value and volume, in hopes of reducing cigarette consumption.

Cigarette brands taxed in terms of value hit a ceiling of 90% of ex-factory price, while those taxed in terms of volume face a rise of 1.1 baht per gramme from 1 baht per gramme, a source at the Government House said.

The tax rise will add an estimated 12 billion baht in government revenue for the remaining period of this fiscal year.

http://www.bangkokpost.com/news/general ... -baht-more

[hhinner]

... in hopes of reducing cigarette consumption.
...
The tax rise will add an estimated 12 billion baht in government revenue for the remaining period of this fiscal year.

...

Just being a bit cynical. Do they really want to reduce consumption? Or is it more about the tax income?

[Big Boy]

Personally, I think it's both. They want to cut consumption, but by increasing the tax, they maintain their income at least if the plan works. If the plan fails, the rich get richer. A win/win situation for the government.

[migrant]

The US has raised taxes on cigarettes, and booze, may times. It's called a sin tax there. The idea is to make it too expensive while gaining tax dollars. The additional taxes are supposed to go to programs that help people quit, but I have not looked to see what difference it makes.

[Big Boy]

The UK did something similar quite a few years ago. At the time, they put either 20 or 40 pence on a packet. My father, who was about a 50 a day man finished what he had, and never bought another packet. A success story for the government at the time.

[migrant]

The UK did something similar quite a few years ago. At the time, they put either 20 or 40 pence on a packet. My father, who was about a 50 a day man finished what he had, and never bought another packet. A success story for the government at the time.

And your Father!!

[oakdale160]

Yes it does havean effect in getting people to quit. Very small but significant. There is a parodox. The more middle age people quit, the more it become s a 'young persons' thing to do. Smoking has always had an image of rebellion about it and this feeds into it.

[jingjoe]

There was talk they were going to introduce this idea in Australia.
Make it illegal for anyone born after 2000 of ever buying cigarettes.

http://www.telegraph.co.uk/news/health/ ... -life.html

[Khundon1975]

hhinner

Just being a bit cynical. Do they really want to reduce consumption? Or is it more about the tax income?

One of the group of companies in the conglomerate I worked for, owned Imperial Tobacco, basically, a licence to print money.

Despite the price/tax rising year on year, people will still shell out for cigarettes, whatever the costs.

The UK HRMC in 2013-14 collected £9.5 Billion in taxes from cigarettes, but lost £2 Billion in tax revenues last year, due to tobacco smuggling into the UK.
I suggest the figure is much higher than that. I don't know if Thailand has the same problem, I suspect it does.

When are these government going to learn, the more they tax fags, the more smuggling will increase.

This is a biased site (they make the fags), I think you are correct, it is mostly the tax the government is after.

http://www.the-tma.org.uk/policy-legislation/taxation/

[gerryha]

My understanding was ciggy prices were to go up 5-10 baht this month but my local 7-11 has put winston up by 17. Are others finding this?

[HHTel]

Yep. My 'Cheap Charlie' cigarettes have gone from 40 baht to 51 baht.

[oakdale160]

So let me guess, you were so horrified by this price hike, that you walked out without buying them and promised yourself that you would never indulge in this self-destructive activity any more.

[Pleng]

I think it's pretty standard that when tax goes up, the retail price increases by more than just the value of the tax.

[HHTel]

So let me guess, you were so horrified by this price hike, that you walked out without buying them and promised yourself that you would never indulge in this self-destructive activity any more.

Not exactly but cut down immediately by half, hopefully on my way to zero!

[oakdale160]

Evidence from the UK and US where the price hikes were significant is that there is an immediate drop in sales, but in about 3-4 months it returns to the old levels.