Academics and public health advocates are urging the Thai government to scrap its current two-tier cigarette excise tax system in favor of a single-rate structure recommended by the World Health Organization (WHO).
Under the current system, a 25% tax applies to cigarette packs priced at 72 THB or less, and 42% to higher-priced packs, along with a 1.25 THB per cigarette specific tax. Experts argue the system has failed to reduce smoking, curb illicit trade, or boost state revenue, with cigarette tax revenue dropping to its lowest level in 15 years.
Dr. Roengrudee Patanavanich of Mahidol University noted that smoking rates stopped declining after the tiered system was introduced in 2017. Previously, a single-rate system had reduced smoking from 31% to 19.1% and increased revenue.
The WHO has advised Thailand to adopt a flat 40% excise rate plus the current per-stick tax. Experts also oppose a new proposal for a three-tier system, warning it would lower prices, favor foreign brands, and increase smoking.
Public health advocates recommend returning to a single-rate tax, enhancing enforcement against illicit trade, and aligning policy with international tobacco control standards.