Tourism News

Tourism News Phuketwan Tourism News
facebook recommendations

NEWS ALERTS

Sign up now for our News Alert emails and the latest breaking news plus new features.

Click to subscribe

Existing subscribers can unsubscribe here

RSS FEEDS

Welcome to Phuket . . . and happy taxes, too

Cigarette Sales Cut by Half as Tax Bites Hard

Friday, May 15, 2009
A DRAMATIC increase in the tax on cigarettes is likely to change smoking habits fast, a survey of three cigarette and alcohol distributors by Phuketwan indicated today.

While it's too early to draw conclusions, the most likely outcome seems to be that many people will be forced to quite smoking, and probably drinking alcohol, too, simply because they can no longer afford it.

This would wipe out the expected financial benefits that the government anticipated from the taxes, but probably produce a saving in public health treatment costs.

Tourists visiting Thailand who have either or both habits would be well advised to bring with them as much alcohol and cigarettes as possible.

Duty free imports to Thailand are limited at one carton of cigarettes and one bottle of alcohol.

The new tax on cigarettes began at midnight from May 14. Here's what three local distributors told us:

Phuket Distributor One: We usually have 200 orders come each month but yesterday there none. We did have plenty of calls, though, from people who wanted to check the prices of cartons of cigarettes. The old average price was 441 baht but from yesterday, the average price was 548 baht. Fully imported cigarettes are now even more expensive. A carton of Marlboro that used to cost 569 baht cost 685 baht from yesterday.

Phuket Distributor Two: The old prices no longer apply so now a carton of 12 large bottles of Singha beer that used to cost 525 baht now costs 605 baht. Cigarettes have also gone up considerably in price. LM cigarettes that used to cost 441 baht a carton now cost 554 baht a carton. Imported Marlboro that cost 75 baht for a pack now cost 83 baht a pack. We expect that to have quite an impact.

Phang Nga Distributor: We are agents in Takuapa. What's happened so far is that orders have dropped by around 50 percent. People who would normally order two boxes are now ordering just one box. Perhaps they expect sales to drop, or perhaps that's all they can afford now. Because it's the wet season, shops also do not want to stock too many packets in case the moisture affects them. A pack of the Thai brand, Krongthip, for example, used to cost 48 baht. From yesterday the price went up to 58 baht. In many cases, customers would be much better off these days buying raw tobacco leaves and then processing it themselves. Maybe that's what will happen.

Under the new excise tax, the price of a pack of imported cigarettes has risen by 15-17 baht and a local brand will cost 10-13 baht.

The increase in tax on alcohol has been in place since May 6.

A tax increase on fuel is not expected to have any impact on consumers because the government had asked the Oil Fund to absorb the rise for now.

Giant Phuket Rally Planned to Push for 'Plus Six'
Latest Phuket, twice promised and twice denied the Asean Plus Six Summit, now plans a large petition in an attempt to make sure that the island gets its third chance.
Giant Phuket Rally Planned to Push for 'Plus Six'

MediaWATCH: Thailand Tourism's Perfect Storm
Latest Tourism leaders see more pain ahead; PAD applies to become a political party; Consumer confidence down; The fight to save whale sharks, and Aung San Suu Kyi.
MediaWATCH: Thailand Tourism's Perfect Storm

Phuket Air Crash: 'Report Three Months Off'
Latest An inquest in Britain is still awaiting the official report of the One Two Go crash that took place on Phuket in 2007, a newspaper says. A British MP is seeking speed and answers.
Phuket Air Crash: 'Report Three Months Off'

Asean Plus Six Summit Postponed Until October
Updating report The Asean Plus Six Summit, seen as as useful low season boost for the Phuket economy next month, is now being postponed until October.
Asean Plus Six Summit Postponed Until October

Phuket Plays Host to Regional Security Summit
Latest: While the Asean Plus Six Summit has slipped from Phuket's grasp for the second time, 27 countries are coming to the island for an important security summit.
Phuket Plays Host to Regional Security Summit

Comments

Comments have been disabled for this article.

gravatar

Your article says "Tourists visiting Thailand who have either or both habits would be well advised to bring with them as much alcohol and cigarettes as possible". Why, when a carton of cigarettes in Heathrow Duty Free will still cost more than three times the new price in Thailand?

Posted by Barry on May 15, 2009 16:57

gravatar

10 bucks a pack in Canada (about 300 baht). Ciggies still cheap cheap here!

Editor: Mmmm . . . surely that depends on whether you're Thai or an expat. Des the average smoker in Canada earn 200 baht a day?

Posted by Nonsmoker on May 15, 2009 21:25


Friday December 27, 2024
Horizon Karon Beach Resort & Spa

FOLLOW PHUKETWAN

Facebook Twitter