Sun, October 17, 2021

in-focus

Cigarette tax rises from Oct 1


The tax on cigarettes goes up from Friday (October 1), according to new tax rates announced in the Royal Gazette today.

Under the new regulation, signed by Finance Minister Arkhom Termpittayapaisith, a cigarette pack priced Bt72 or lower will be taxed at 25 per cent, while a pack costing more than Bt72 will be taxed at 42 per cent. Cigarettes sold individually will be taxed at 1.25 baht per stick.

The new rates are higher than the existing rates in place since 2017, in which packs priced Bt60 or lower were taxed at 20 per cent and packs over Bt60 were taxed at 40 per cent.

The regulation also stipulates that tobacco that is not in cigarette form will be taxed at 0.025 baht per gram, at a limit of 12,000 kilograms per year. The amount over this limit will be taxed at 0.1 baht per gram.

Earlier this month an informed source said the new tax structure would drive up the retail price of cigarettes by Bt6-8 per pack. Some retailers have reportedly been hoarding cigarettes for several months over fear of a price hike under the new tax structure.

 

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Published : September 30, 2021