Taxing choices: Thai Excise Department ponders single rate or weighty decision for cigarettesLegacy
Ekniti Nitithanprapas, Excise Department Director-General, announced that the department is deliberating over whether to implement a single tax rate or a weight-based tax for cigarettes. Currently, the tax structure is a two-tier system, with a 25% tax applied to cigarette packs retailing at up to 72 baht (US$2), aimed at reducing the impact on low-income individuals.
Packs costing more than 72 baht are taxed at 42%. An additional flat-rate tax of 1.25 baht (US$0.036) per cigarette is also applied, regardless of the pack’s retail price.
The two-tier system, according to Ekniti, has led to cigarette manufacturers selling packs for 72 baht or less to avoid higher tax rates. If a single tax rate is to be implemented, it must balance the income of farmers, public health, government revenue…
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