Tiered tax system on cigarettes under fire

Lower prices 'will encourage smoking'

- POST REPORTERS

Academics have criticised the tiered tax system currently applied to cigarettes, and called on the government to restructure it to a single excise tax rate as recommended by the World Health Organization (WHO).

They said the tiered tax system has failed to curb illegal cigarettes, and failed to boost state revenue or prevent new smokers.

Dr Roengrudee Patanavanich, an academic at Mahidol University's Faculty of Medicine, said the Excise Department is considering a new tax structure for cigarettes to replace the current system, which has been in effect for almost four years.

At present, a two-tier system is applied to excise duties levied on cigarettes, which comprises a 25% tax on cigarette packs with a retail price of up to 72 baht to ease the burden on low-income earners, and 42% for packs priced higher than 72 baht.