The Royal Gazette today, September 30th, has announced the increase of cigarette tax rate from 1.20 baht to 1.25 baht per roll, effective from October 1st.
The announcement describes that the tax per portion will be from 1.20 baht per roll to 1.25 baht per roll while the VAT collection will still be different rates, from 20 percent for the retail price of 60 baht, 40 percent for more than 60 baht, 25 percent for 72 baht, and 42 percent for the retail price of more than 72 baht.
Arkhom Termpittayapaisith, Minister of Finance, stated that the tobacco excise tax reprice has nothing to do with the government’s loan announcement last week. The restructuring does not only focus on income but also aims to potentially encourage the public to quit smoking as a similar no-smoking campaign has developed in many countries around the world. He dismissed criticism that the increase was meant for the government to make more money.
“The Cabinet considered the reprice by focusing on public health rather than any government income, as we truly care about the health of the people. Therefore, we thought that if we wanted people to quit smoking, pricing is one mechanism that may help. The increase in retail prices will affect the consumption rate of cigarettes. This restructuring had been well considered by the Cabinet in many dimensions to become the most appropriate and fairest for everyone,” Arkhom added.
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