Starting yesterday (Jan 26), all alcoholic drinks and tobacco products–both imported and domestically produced–will be charged an addition of two percent excise tax, with the extra revenue earned going into a fund to help elderly people.
However, Excise Department director-general Mr Krisada Chinavicharana said that the 2 percent rise in excise tax would have little impact on the production cost of alcoholic drinks and tobacco products as it would account for a fraction of the costs.
Citing the case of a packet of cigarettes whose excise tax amounting to 25 baht, he said that the excise tax increase would amount to just 50 satang.
Whether the tax increase would impact on the retail price of cigarettes or not depends on the policy of the manufacturers and Thailand Tobacco Monopoly if they would be willing to absorb the additional cost or to pass it on to the consumers, Mr Krisada added.
Mr Krisada warned retailers and wholesalers not to take advantage of the excise tax increase by jacking up the prices of their products in storage.
The 2 percent excise tax increase will earn the Excise Department an addition of between 4,200-4,600 million baht from its annual excise tax revenue amounting to about 200 billion baht.
About 4 billion baht of the excise tax are to be allocated for the Older Persons Fund to help elderly people.
(Source:-ThaiPBS)