According to the Thai financial website thairath, Teerachai Attanawanich, deputy minister of finance and chairman of the National Tobacco Authority of Thailand, said that Thailand is considering a modest tax on e-cigarettes.
Reduce the problem of illegal e-cigarettes
Telachai said they plan to adjust from the current two tax rates to a suitable tax rate to achieve a balance between health and national revenue.
The move could also reduce the problem of illegal imports and counterfeit e-cigarettes.
“We understand that the Tobacco Authority has been in discussions with the Ministry of Health to find a solution together.”
Although Thailand has banned the circulation and manufacturing of e-cigarettes, the number of counterfeit e-cigarettes in the market has accounted for an important share of the market, accounting for about 25%.
Telachai said the Thai government needs to find appropriate ways to reduce the number of counterfeit e-cigarettes.
“Illegal e-cigarettes may not be of the standard quality and may pose a risk to the health of smokers.”
He also noted that consultations with imported e-cigarette companies are currently underway to find a solution. He believes that if e-cigarettes are legalized and a reasonable tax mechanism is established, it can help regulate the market while reducing health risks.
Illegal products should be legalized.
Because current e-cigarettes are illegal products, they cannot be taxed.
He said taxes could not be collected because there were no tax records. However, e-cigarettes are heavily used and readily available. Therefore, he called on all concerned parties to resolve the issue as soon as possible.
“We should decriminalize illegal products and bring them into the legal tax system to generate revenue for the country while regulating imports and the health of citizens.” We need to weigh these factors in the balance between national income and the health of our citizens.”
It is reported that the current tax on cigarettes in Thailand is divided into two levels: a single price of 72 baht or more cigarettes, the levy of 42% tax; A 25% tax on a single cigarette sold for less than 72 baht; Cigarette rolls are sold at 1.25 baht per roll, subject to 1.25 baht tax.
Over the past 10 months, tobacco tax revenues in the country have fallen. In fiscal year 2023, the tax revenue was 49.748 billion baht, compared to 59.784 billion baht in fiscal year 2022 and 64.760 billion baht in fiscal year 2021.
References: