According to Thai financial website Thairath, Teerachai Attanawanich, deputy minister of Finance and chairman of the National Tobacco Council, said that Thailand is considering a moderate tax on electronic atomization and balance the relationship between health and national revenue by adjusting the tax rate.
At present, Thailand is facing challenges in the electronic atomization market, including the high proportion of illegal products in circulation and the increasing problem of counterfeit electronic atomization products.
It is estimated that counterfeit electronic atomization products in Thailand have accounted for about 25% of its market share, posing serious health risks to consumers. To address the issue, Thai Deputy Finance Minister and chairman of the National Tobacco Council – Telachai said the government is considering a modest tax on the legalization of electronic atomization and adjusting the tax rate to balance the relationship between health and national revenue.
Telachai pointed out that the number of illegal electronic fogging is large and easy to obtain, so electronic fogging should be legalized and included in the legal tax system. This will not only generate revenue for the country, but also strengthen the regulation of imports and the health of citizens. He stressed that solving the problem requires weighing the interests of national revenue against the health of citizens.
Telachai said that by imposing a moderate tax, the problem of illegal imports and counterfeit electronic atomization can be effectively reduced. In addition, a reasonable tax mechanism can also help regulate the market, improve the quality and safety of electronic atomization products, and reduce the risk to smokers’ health. In order to achieve these goals, the Tobacco Authority of Thailand has discussed cooperation options with the Ministry of Health and is in consultation with importing electronic atomization companies.
In addition to the above, the DKECE team also learned that tobacco tax revenues in Thailand have declined over the past 10 months. Tax revenue for fiscal year 2023 was 49.748 billion baht, down from 59.784 billion baht in fiscal year 2022 and 64.760 billion baht in fiscal year 2021. In order to counter the trend of declining tax revenue, the Thai government needs to find new sources of revenue, and legalizing electronic atomization and imposing moderate taxes can be a viable solution.
In conclusion, Thailand is considering a modest tax on electronic atomization and adjusting the tax rate to balance the relationship between health and national revenue. The move aims to reduce the problem of illegal imports and fake electronic atomization, and improve the level of supervision over the market. Legalizing electronic fogging and imposing a modest tax could generate revenue for the state while protecting smokers’ health. With the development of the electronic atomization market, the Thai government needs to find suitable solutions to adapt to the changing situation.
In the face of Thailand’s electronic atomization market, which is expected to be compliant soon, how will domestic electronic atomization enterprises grasp the opportunity?