Single-Rate Tax: Solution to Cut Smokers, Boost Revenue

MGR Online•General•22d ago

Reader Briefing

A public health advocate urges the Thai government to adopt a single-rate cigarette tax to boost revenue and reduce smoking rates, particularly among vulnerable groups.

•A single-rate tax on cigarettes is proposed as a solution to increase state revenue and decrease the number of smokers in Thailand.
•The current dual-rate tax system, implemented in 2017 BE (2017), has led to significant revenue losses and makes cheaper tobacco products accessible to youth and low-income individuals.
•Public health organizations recommend a swift implementation of the single-rate tax, citing international best practices and the potential for immediate positive impacts on both revenue and public health.

Overview

•The dual-rate cigarette tax system in Thailand has been in place since 2017 BE (2017), leading to a significant drop in factory profits and state tax collection.
•Prof. Dr. Prakit Vateesathogkit, President of the Smoke-Free Thailand Foundation, asserts that a single-rate tax is the solution to increase state revenue and reduce smokers.
•State tax revenue from cigarettes has decreased from nearly 70,000 million baht annually to over 40,000 million baht in the past year.
•The current tax structure allows cheap tobacco products like hand-rolled tobacco (ยาเส้น) to be sold for as little as 10 baht, making them accessible to low-income individuals and youth.
•The World Health Organization sent experts to recommend Thailand adjust to a single-rate tax in 2018 BE (2018) and 2019 BE (2019), but Thailand did not comply.
•While the government has reportedly reached a consensus to adopt a single-rate tax, it has not yet been presented to the Cabinet for approval.
•The dual-rate system has resulted in approximately 95% of cigarettes shifting to the lower tax bracket, thereby reducing overall tax collection and increasing the competitiveness of foreign brands.
•The government is expected to bring the single-rate tax proposal to the Cabinet soon, following legal inquiries into its constitutional implications.

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Key Quotes

Prof. Dr. Prakit Vateesathogkit

"A single-rate tax increases state revenue and reduces smokers."

ภาษีอัตราเดียวเพิ่มรายได้รัฐและลดคนสูบ

Prof. Dr. Prakit Vateesathogkit

"A good cigarette tax is a win-win."

ภาษีบุหรี่ที่ดี win-win

Prof. Dr. Prakit Vateesathogkit

"Tax structure is the solution that helps increase state revenue and reduce the number of smokers."

โครงสร้างภาษี คือทางออกที่ช่วยเพิ่มรายได้รัฐและลดจำนวนผู้สูบ

Key Entities

Person

Dr. Prakit(หมอประกิต)

President of the Smoke-Free Thailand Foundation, advocating for a single-rate cigarette tax.

Organization

Smoke-Free Thailand Foundation(มูลนิธิรณรงค์เพื่อการไม่สูบบุหรี่)

An organization advocating for reduced smoking rates and public health policies related to tobacco.

Ministry of Finance(กระทรวงการคลัง)ℹ️

The government ministry responsible for fiscal policy and taxation in Thailand.

Cabinet(ครม.)ℹ️

The executive body of the Thai government responsible for approving policies and laws.

World Health Organization(องค์การอนามัยโลก)ℹ️

An international organization dedicated to public health, which has previously advised Thailand on tobacco tax policy.

Tobacco Factory(โรงงานยาสูบ)ℹ️

Refers to the state-owned Thailand Tobacco Monopoly, which is affected by cigarette tax policies.

Thailand Tobacco Monopoly(การยาสูบแห่งประเทศไทย)ℹ️

The state-owned enterprise responsible for tobacco production and sales in Thailand.

Timeline

2017 BE(ปี 2017)

The year the dual-rate cigarette tax system was implemented in Thailand.

2018 BE(ปี 2018)

The year the World Health Organization first advised Thailand to adopt a single-rate cigarette tax.

2019 BE(ปี 2019)

The year the World Health Organization again advised Thailand to adopt a single-rate cigarette tax.

Law

Hand-rolled tobacco(ยาเส้น)

A type of tobacco product that is significantly cheaper than factory-made cigarettes, posing accessibility issues for low-income individuals and youth.

Illicit cigarettes(บุหรี่เถื่อน)

Smuggled or illegally produced cigarettes that bypass taxation and regulation, contributing to revenue loss and public health issues.

E-cigarettes(บุหรี่ไฟฟ้า)ℹ️

Electronic nicotine delivery systems that are a growing concern for youth addiction and present a public health challenge.