Big challenge to challenge the new government It’s time to end the double tax on tobacco.

Big challenge to challenge the new government Is it time to end the 2 rates of tobacco tax and use the same international rate???

The World Health Organization set a campaign slogan.world no smoking dayon the day May 31, 2023 This year, “We need food, not tobacco.” or “We need food, not tobacco” To raise awareness about alternative crop production and market opportunities for tobacco farmers. includingEncourage them to grow sustainable, nutritious crops. instead of growing tobacco to reduce the impact of the global food crisis

corresponds toat the governmentThaihaveThe goal is to reduce tobacco consumption and encourage tobacco growers to switch to alternative crops. after tobacco farmersThe quota for tobacco cultivation was reduced by more than a percent. 50 come 5 consecutive years as a result ofactionRaise excise taxes on tobacco and useDual Tobacco Tax Rate Structure since 2017 namely

1. cigarette tax rate Taxed by value 25% of suggested retail pricesthe not more than 72 baht and 42% of suggested retail pricestheexceeded per pack 72 baht and collecting tax according to the amount 1.25 baht per roll

2. Tobacco tax rate whose production volume does not exceed 12,000 kg per year Collect the tax rate according to the quantity 0.025 baht per gram, and tobacco with excess production 12,000 kilograms, tax rates are levied according to the quantity 0.10 baht per gram

The government hopes that the restructuring of the tobacco excise tax willand continuous increase in tax rates will makepricecigarettes rose and will helptobacco consumptionGradually reducedown 2-3 percent This will not have much impact on tobacco farmers. Because farmers still have time to gradually adapt, change to work or fish.uOther plants can be substituted.

butOn the other hand, what happenedSince the situation of the epidemic of infectious diseaseroNice 2019 tillCurrently, not as expected by the government due to economic problems that have not yet recoveredw affecting the income of people who do not yet have purchasing power Make this tobacco tax restructuring lead to the problem of destroying the cigarette industry. Competition selling cigaretteslow according to the tax rate 2 rate As a result of the loss of tobacco industry market share Continued impact on tobacco farmers Entrepreneurs of curing plants and workersrelevanttotal over 30,000 households which had to reduce the quota for the purchase of all three species of drugs by more than 50 percent incomeFarmer’s households have decreased.too

While measures to help farmers who grow medicinal leaves according to the Cabinet resolution that approves projects to assist tobacco growers and independent curers Affected by the reduction of the quota for the purchase of tobacco leaves of Thailand Instead, there was a delay in disbursement to the farmers.and not complete all seasonscultivate the moreaggravateTrouble for farmers who grow medicinal leavesnationwide

as well as measures to help farmerswho want to reduce the cultivation of tobacco leavesturned to planting other crops instead was unable to move forward in a concrete way both in terms of training and knowledge for career change and financial measures that farmers need low-interest funds in order to invest in new replacement crops

In the past, there has been a research study on the need to stop growing tobacco and ways to promote alternative crops among tobacco farmers.thenumberlayinPhetchabun and Sukhothai provinces found that most tobacco farmers, more than 60 percent, had no idea to stop growing tobacco. because it is a traditional occupation that has been done for generationsthe rest isTobacco farmers who want to change careersbecauseno grandchildren continue low price of tobacco leaves and get a reduced quota

key point section That this group of tobacco farmers need help from the government during the period of quitting tobacco planting, that is, they need interest loans. Vocational training or substitute career and want the government to find a market and guarantee the price of produce

In addition, the result ofpolicytobacco tax timesthat causing the price of cigarettes to rise, so peopleturn to consume products thatexaminequalitynot andCheaper as reflectedThe smuggling of illegal cigarettes last year increased by more than 70 percent, which came from counterfeit trademarked cigarettes. and tax evasion cigarettes including values ​​thatpersonturned touseelectronic cigarette atAlthough recognized in many countries as being less harmful to health,It is still an illegal product in Thailand. actionatSmokers turn to alternative products.illegalthusthe more harmfulcontinueeconomy collectiontax and imageof the country

It can be seen that this tobacco excise tax restructuring has affected many sectors. Occupation of tobacco farmers Entrepreneur of a curing plant and labor involved includingactiontobaccoof the countryProfThaithemselves with reduced incomes.than percent 90 Over the past several years, it has affected the remittance of budget money into the country to bring benefits back to the nation. even consumersIt is not reduced by turning to pumping a lot of cheaper substitutes.

This is another big problem for the new government. coming to govern the country It should be reviewed on this excise tax restructuring. As a result of past operations, what are the advantages, disadvantages and impacts of each sector? In terms of fiscal risks, it was found that the remittance of excise taxes from tobacco continued to decline. public health issues arising from the health of thoseI haven’t quit smoking yet. and still notThere is a chance to choose to consume products that are less harmful to health. Including taking care of farmers who grow medicinal leaves and those involved.

actionReview the tobacco excise tax structure with two rates tois the flat ratewaccording to international standards This is in line with the plan to review the tobacco tax structure and rates both in the medium and long term.of the Excise Department assigned by the Ministry of Finance To lead to a flat-rate structure in the future that is appropriate, fair and takes into account market competition as well as public health care. and farmers who continue to grow medicinal leaves as well So it’s probably the answer.Good for the new government that wants to make changes in Thailand.

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