Thailand Considers Moderate Tax on Vaping Products, Discussing Plan With Importers

The Deputy Minister of Finance and Chairman of the Tobacco Authority of Thailand, Teerachai Attanawanich, stated that Thailand is considering imposing a moderate tax on e-cigarettes.

[Two Supremes News] According to the Thai financial website thairath, the Deputy Minister of Finance and Chairman of the Tobacco Authority of Thailand, Teerachai Attanawanich, stated that Thailand is considering imposing a moderate tax on e-cigarettes. 

Reducing Illegal E-Cigarette Issues 

Teerachai stated that they plan to adjust from the current two tax rates to a suitable tax rate to balance health and national revenue. 

This move could also reduce the issues of illegal imports and counterfeit e-cigarettes.

"We understand that the Tobacco Bureau has been discussing with the Ministry of Health to find a solution together." 

Although Thailand has banned the circulation and manufacturing of e-cigarettes, the number of counterfeit e-cigarettes in the market has already accounted for a significant market share, about 25%. 

Teerachai stated that the Thai government needs to find suitable methods to reduce the number of counterfeit e-cigarettes.

"Illegal e-cigarettes may not meet quality standards and could pose health risks to users." 

He also noted that discussions are ongoing with import e-cigarette companies to find solutions. He believes that if e-cigarettes are legalized and a reasonable tax mechanism is established, it could help regulate the market while reducing health risks.

Illegal Products Should Be Legalized 

Since current e-cigarettes are illegal products, taxes cannot be collected.

He stated that due to the lack of tax records, taxes cannot be levied. However, the usage of e-cigarettes is high and they are easily accessible. Therefore, he calls for all parties involved to resolve the issue as soon as possible.

"We should legalize illegal products and incorporate them into a legitimate tax system to generate revenue for the country while regulating imports and protecting citizens' health. In weighing national revenue against citizens' health, we need to consider these factors." 

It is reported that currently, Thailand's tobacco tax is divided into two levels: cigarettes priced above 72 baht per stick are taxed at 42%; those priced below 72 baht are taxed at 25%; and rolling tobacco is taxed at 1.25 baht per roll.

In the past 10 months, the country's tobacco tax revenue has declined. In the 2023 fiscal year, the revenue was 49.748 billion baht, down from 59.784 billion baht in the 2022 fiscal year, and from 64.760 billion baht in the 2021 fiscal year.

References:    【1】 ??????????????????????????????????