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Home » Background » Thai tobacco farmers in trouble
Thai tobacco farmers in trouble
Due to less smoking and the increase in the tax on tobacco in September last year, farmers who grow tobacco are in trouble. Previously, up to 600 tons of tobacco were purchased per year, but now turnover has fallen sharply. A reason for the government to freeze tobacco sales for three years.
This is especially a heavy blow for the farmers in Chiang Mai. However, the government first wants to dispose of the stored quantities of tobacco before purchasing new tobacco. Not only the farmers are affected, but also the tobacco processing factories. In addition to Chang Mai, there are more areas that will be affected by this, such as Chang Rai, Phrae, Nan, Phayao, Lampang, Phetchabun and Sukhothai. The farmers from these areas are sounding the alarm and have offered a petition to get the measure off the table.
There may be another hefty tax measure of 40 percent later this year, which would hit suppliers, the processing industry and distributors hard.
The government wants to get rid of the stored tobacco first.
Wouldn't that be the real problem?
They have bought much more tobacco in previous years than they needed?
I didn't really notice that there is less smoking.
Will the administrative (ir?) responsible who decides on this (decided?) now also be prosecuted and punished, as was previously the case for the failed rice purchase policy?
I understand that something else is going on. Tobacco monopoly brings about 7 to 9 billion a year to the treasury. That is a considerable amount that the government will miss, if the next tax increase, which is now delayed, is just as successful as the first tax increase!
What a complaint. If they change something else and the problem is solved. The same applies to the rubber farmers, tapioca farmers, maize farmers and all other farmers and therefore entrepreneurs: if one fails, you try something else. But don't bother someone else if your yield decreases, that's part of doing business.