Description:
One of the most effective policy interventions to reduce tobacco use is taxation. Illicit trade in tobacco involves tax avoidance and so will decrease the public health benefits, if smokers purchase lower-priced cigarettes from the black market. Cigarette tax avoidance reduces the average sale price, thus increasing consumption. Thailand has one of the highest tobacco tax rates in Southeast Asia - ad valorem rate was 80% of the factory price in 2008 (Excise Department). Between 1994 and 2006, tobacco taxes were increased six times during which time the number of legal cigarette sold went down from 2302 million packs to 1819 million packs. In May 2009, the Abhisit’s administration increased the ceiling of tax on manufactured cigarettes from 80% to 90%, and manufactured cigarette tax now represents 85% of the factory price. Tax on shredded tobacco, used for roll your own, is negligible at 0.1% or 0.1 Baht per 10 grams (Excise Department, 2009).
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