Tax change hits local sales

| November 24, 2017

The Thailand Tobacco Monopoly (TTM) has asked the Finance Ministry to reconsider its new excise-tax structure, according to a story in The Bangkok Post.

Under the new structure, TTM’s sales during the current fiscal year, which started on October 1 and which will end on September 30, 2018, are estimated to fall by 41 percent compared to those of the previous fiscal year.

The deputy finance minister Wisudhi Srisuphan said yesterday the ministry was considering TTM’s request for a review of the new structure.

Meanwhile, TTM’s employees are gathering signatures in support of filing a complaint against the ministry with the Administrative Court.

As with the previous tax structure, the new one is based on both quantity and prices, but while the prices used as the basis for previous taxes were ex-factory or declared import prices, now they are based on suggested retail prices. The rates are 20 percent for a pack of cigarettes priced at not more than 60 baht, and 40 percent for a pack priced at more than 60 baht.

After the new rates came into effect in mid-September, importers were said to have cut the suggested retail prices of some types of imported cigarettes to 60 baht a pack to take advantage of the new rates.

And in doing so they have taken market share from the TTM.


Category: Breaking News, People, Tax

Comments are closed.