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Tobacco dumps, prices of smuggled cigarettes rise next year
Date Nov 13, 2020 at 7:35 AM
Tobacco Threatens To Close Factories If Government Raises Cigarette Tax By 40% In A Single Year
Mr. Panupol Ratanakanjanaphat The Governor of the Thailand Tobacco Authority (CAT) revealed that he was willing to discuss with Mr. Arkom. Add Pittaya Paisit, Minister of Finance in December to consider that the new structure of the excise tax on cigarettes 2 is 20% and 40% if the original structure is announced. And charged at a single rate of 40% on October 1, 2021, the CAT will not be able to continue operating. And it may have to shut down the factory, where CAT makes a profit from cigarette sales at the current tax rate of 67 satang per pack, down from 7 baht per pack.
For the excise tax proposals on cigarettes 2, the new structure will keep storage rates at 20% and 40% the same, but will consider all five components:
1. The new tax structure will not do it. CAT just survives. But the tobacco industry and the private sector will outlive the 2. Excise tax collections will not decrease.
3. Related operators such as distributors. Pharmaceutical farmers have increased their income.
4. The funds will receive the same money allocated, as SSO 5. There should be no more people smoking.
Panupol said that if the new tax structure is approved in the next year CAT will be able to launch new products With a sale price of less than 60 baht, which can still be profitable In addition, from a consultation with the previous Finance Minister, the policy of the CAT to develop new products, premium formulas, for export to foreign countries. Like that of foreign tobacco companies Bringing cigarettes for sale in Thailand with CAT potential. And premium cigarettes are expensive which will increase tobacco revenue.
“The current tax structure maintains a strong 100% position. In 2020, earnings exceed 900 million baht due to the austerity policy to reduce costs, but if the tax rate moves to a single rate of 40%, tobacco cannot be sold. ” The factory must be closed. Because the price of cigarettes must go up To raise money to pay taxes I can’t survive, “said Panupol.
Panupon said he met with Santi Promphat, Deputy Finance Minister, who supports the 1 million percent of the NBTC to continue planting hemp and cannabis. It is an economical crop for commercial use. To collaborate with educational institutions for research. Developed for use in medicine. Increase the ability to reach an agreement with the private sector. Encourage the use of hemp – cannabis commercially, where the principles of legal difficulties Has proposed discussions to the Office of the State Business Commission (Sr. Kor Kor.), Provided that SEPO and the Treasury agree It has to be proposed to the Cabinet (Cabinet) to approve the next step. CAT has to open a registry for hemp-cannabis growers, which CAT has information on all drug leaf growers. It can be controlled.It will be clear in fiscal year 2021 and sales will begin at the end of the fiscal year. Consultation with the private sector will result in farmers’ income from growing tobacco leaves from 23,000 baht per rai to 250,000-500,000 baht per rai.
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