Thailand plans to impose separate tax for cigarettes to combat smuggling surge


BANGKOK: The Finance Ministry has tasked the Excise Department with setting a single tax rate for cigarettes to tackle the surge of illegally imported cigarettes.

The move was prompted by a significant decline in tax collection from cigarettes, deputy finance minister Paopoom Rojanasakul said on Tuesday (Nov 5), adding that smuggling was the main reason.

“We expect the single tax rate to become clearer soon. Implementation will also give the tobacco industry and farmers time to adjust their operations,” he said.

Currently, the Excise Department employs two tax collection methods for cigarettes: A quantity-based tax of 1.25 baht per pack and a price-based tax of 25% for packs priced under 72 baht and 42% on more expensive packs.

The Excise Department has also implemented a QR code system that can trace the origin and taxation of each pack of cigarettes, ensuring quality standards, said Paopoom.

Smuggled cigarettes have cost the government 2.33 billion baht in lost tax revenue this past fiscal year, according to the Excise Dept. - The Nation/ANN

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Thailand , cigarettes , tax , smuggling

   

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