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Home » News from Thailand » Price increase alcohol and cigarettes: Ministry tries to prevent hoarding
Cigarettes and alcohol will be more expensive from tomorrow due to an increase in excise duty. The new prices have not been announced, but they could be significant. The government therefore fears that many Thais will hoard tobacco and alcohol.
The excise duty will be calculated from tomorrow according to a new method, which also applies to sugary drinks, tea and coffee. The price of a pack of cigarettes will probably increase by 24 baht.
Part of the proceeds from this tax increase will go as a subsidy to the Thai Health Promotion Foundation, television channel PBS and the National Sports Development Fund.
Internal Trade Department officials conduct checks on markets. Hoarding carries a penalty of up to seven years and/or a fine of 140.000 baht.
Source: Bangkok Post
The photo suggests that a pack of 20 Marlboro would now be 92 Baht, but that was a while ago. The current price is 125 Baht, more than € 3.25.
When reading this message I wanted to run to the Familymart to stock up, but seven years in a Thai cell is too much for me.
That's right, photo is from the archive.
If people still have to start hoarding today, they are a bit late.
The stocks in the stores are probably too small for that.
And it is already too late for the shops to start hoarding.
At the most, they can postpone the sale of their stock for a day.
Incidentally, as a government you should be above that and only be involved in such a thing at wholesale level, or at the producer.
And give the consumer his delayed “benefit” of a few days.
Only a small part of the proceeds from these sin taxes goes to charities. From the bangkok post:
'In addition to the excise tax, sin-tax payers are required to pay “earmarked taxes” to three agencies set up for social benefits to finance their operations — the equivalent of 2% of all sin tax collections to the Thai Health Promotion Foundation, 1.5% to state-owned TV operator Thai PBS and 2% to the National Sports Development Fund. However, the latter two may receive up to 2 billion baht each year, with the excess going to state coffers.
The cabinet also recently approved the yet-to-be-set-up Elderly Fund as another beneficiary of the earmarked tax, at 2% of the sin tax collections but not more than 4 billion baht a year.'
The rest goes into the general fund.
Gee, what a happy person I am as a non-smoker and a woman who does not smoke. These problems pass us by.
If you don't drink either, that will add up. Otherwise, just like many Thai people, you will deteriorate considerably. Seems to be quite a problem with the significant number of heavy drinkers in Thailand.
The government in Thailand mainly depends on indirect taxation for its revenue, and that is mainly the VAT of 7%. You do not have to pay income tax up to an annual salary of 150,000 baht (say 12,000 baht per month). Add to that the large group of small independent entrepreneurs and freelancers (no income control because no registered company), and you can count on your fingers that more than half of the Thai population does not pay income tax.
So if you as a government need more money, you have to increase the tax on goods or come up with new tax measures such as property tax, inheritance tax, wealth tax, etc., which mainly affect the rich. Although it is being considered, nothing has been decided yet. You understand why.
Increasing the tax on alcohol and smoking products has only a minor effect on the number of users and/or their consumption, research shows. An increase therefore brings extra money into the government's coffers, and that is also the intention, not really curbing alcohol consumption and smoking.
I think it would have been better to increase the VAT rate to 8 or 9% so that every Thai is basically affected and the poor in this country have more options to respond to such a tax increase, depending on their consumption pattern.
This tax increase is a historically known policy choice: “bien sur les riches ont la capacité de suporter des impots plus lourds, mais les pauvres sont tellement plus nombreux…”
We have to guess whether and how interests and effects (social and personal) were thoroughly considered and weighed up in this policy choice.
I fear that greed has defeated wisdom again 🙂
Today, the prices for wine, etc., were still the same in the Big C. It is unbelievable that as a government you cannot indicate exactly what that entails the day before a tax increase takes effect - and apparently that today, on the date of implementation, it still cannot can.
Around half past five this afternoon, the Bangkok Post published the following estimates – for the beer it seems to be rather better than expected:
http://www.bangkokpost.com/news/general/1325583/taxing-times-for-smokers?utm_source=bangkopost.com&utm_medium=homepage&utm_campaign=most_recent_box
In Qatar, a carton of Gauloises costs €8,00. Instead of flying directly to BKK, it is better to make a stopover. In addition, the airline tickets are also many times cheaper. So just stock up and make sure that customs have no reason to check your suitcase!
Last night I got a can of chang beer here in the Isaan cost 10 bath more 33% I think it's quite a bit that for a can of beer .Beer is already expensive in Thailand in general