Illustrative image (Source: Internet) Bangkok (VNA) – Thailand’s tax-collecting agency said the Thai government considers fining cigarette importers which set their retail prices below the prices listed before September 16, 2017 – the first day the new excise tax came into force.
The information was announced after the state-owned Thailand Tobacco Monopoly (TTM) accused foreign cigarette importers of exploiting the new excise levy by cutting retail prices to pay a smaller tax burden.
The current excise tax uses the suggested retail price to replace the ex-factory price and the cost, insurance and freight (CIF) values as the base for excise tax computation.
With the change in excise tax structure, cigarettes are liable for tax both in terms of volume and value, regardless of price.
The levy in terms of volume was raised to 1.20 baht per cigarette from 1.10 baht, while the tax based on value was divided into two rates: 10 percent of suggested retail price for cigarettes priced below 60 baht per pack and 40 percent for those priced more than 60 baht.
If the decision is enforced, it will not only help the government maintain tax revenues but also prevent consumers, particularly young people, from easily accessing cigarettes.-VNA
VNA
