Thailand

Updated May 2013

Tax

Total tax rate as a % of Retail Price: 70%
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Impact on Revenue

Government revenue from tobacco tax 2005 – 2010 (figures in USD)*
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*Country customs department and Ministry of Finance Data 2010-2012

Price

Cigarette Price (2012)
Most popular local brand is Krongthip costs 2.16USD per pack
Most popular foreign brand is Marlboro costs 2.66USD per pack 

The Thai Global Adult Tobacco Survey (GATS) 2011 showed an overall smoking prevalence of 24%, compared to 32% in 1991; however, there was a 1% increase in smoking prevalence among adult males from 45.6% to 46.6% between 2009-2011, but a decrease in female adult smoking prevalence from 3.1% to 2.6%. This was the first time in 20 years that smoking prevalence in Thailand showed any increase, prompting the Thai Cabinet in June 2012 to approve the Ministry of Health’s National Tobacco Control Plan and also, on 21 August 2012, to increase tobacco taxes for the tenth time in 18 years, from 55% of the ex-factory price in 1992 to 87% in 2012.

Through a range of tobacco control measures, Thailand reduced its number of smokers by 5.7 million persons between 1991-2011. Despite several tax and price increases and slowly declining smoking prevalence rates, cigarette sales volumes have remained relatively constant, even as tax revenues have increased more than four-fold (from THB 15.44 billion in 1992 to THB 59.91 billion in 2012). However, noting that the current adult smoking prevalence had slightly increased in 2011, the government mandated another tax increase in 2012 and began a process to amend and strengthen their tobacco control legislation.

Impact of tax increase on tobacco tax revenue and smoking prevalence, 1991-2012
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The major portion of the industry belongs to the Thailand Tobacco Monopoly along with 14 private companies with all domestic production of cigarettes monopolized by law. Premium brands dominate the market followed by standard to low-priced brands, however, with the recent increase in the tax rate, low-priced brands are expected to increase in sales.

Below are the 2012 government-adjusted tobacco tax rates on all types of tobacco aimed at both controlling cigarette consumption and increasing revenue.

Comparison between the previous and new tobacco tax rate in 2012
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The new adjustment of tobacco tax rates attempts to prevent the down-trading effect in shifting consumption to low priced tobacco products particularly roll-your-own (RYO) or shredded tobacco. It is expected that the production cost will increase, leading to increases in the retail price and resulting in gradually reduced consumption.

Source:

ASEAN Tobacco Tax Report Card

ASEAN tax report