Restructured tobacco tax regime in Thailand expected to come into effect from October 1

A new tobacco tax structure, effective Oct. 1, will yield more than Baht 60 billion per year, according to excise estimates.

The department’s director-general, Lavaron Sangsnit, said the finance minister would consider the new tobacco tax structure.

It is expected to be submitted to the cabinet for approval in the last two weeks of September, after which it will come into effect on October 1.

Lavaron added that current cigarette tax revenues are Baht 60 billion per year. He confirmed that the tax rate will not be lower.

The tax rate was reduced to 20 per cent for cigarette packs priced at 60 Baht or lower. This rate is valid until September 30. The old tax rate was 40 per cent, effective as of October 2017. Many cigarette manufacturers lowered their retail price to below 60 baht to reduce the tax burden.

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