Cigarette tax increase will decrease number of smokersMay 15th, 2009 - 6:01 pm ICT by admin
By Jittima Jantanamalaka
Prof. Prakit Vathesatogkit, Executive Secretary of Action on Smoking and Health Foundation welcome the government policy of increasing cigarette tax. He believes that the tax increase will greatly benefit smokers in Thailand. This is due to the fact that the higher cigarette price will result in people smoking less or quit completely, especially in the lower income group.
A country-wide research conducted in 2006 to evaluate the impact of tobacco tax increase, from 75% to 79% which led to 15% increase in price found that 58% of smokers smoke less while 10% have shifted to cheaper brand of cigarettes. Furthermore, 23% purchase only single sticks and 9% switch to hand-roll cigarettes. The number of people who quit smoking completely was at an impressive 10%.
Dr. Prakit said “ from 1993 through to 2007, the government of Thailand has increase tax 8 times in total. This gradually increases the price of Krongtip ( the most popular brand of cigarette) from 15 Baht per pack to 45 Baht per pack (while the latest increase leads to 56 Baht). The impact was most evidence in the lower income group in Thailand, which the smoking prevalence has declined from 42% in 1991 down to only 20.7% in 2007. The household income this groups spent on cigarettes also reduce from 16.30% in 1991 to 8% in 2007.
According to the World Bank, the tobacco tax should be two-third or three- fourth (66-80%) of retail price in order to have desirable impact in reducing tobacco use. The current tax burden on cigarette is now 69% of the retail price (or 85% of factory price plus 7% VA, 2% health tax, 1.5% Public television tax and 0.5% local tax). World Bank has recommended all government to use Tobacco tax increase as one way to fight poverty. The obvious reason is that money saved from cigarette either by quitting or reducing number of cigarette, can then be spent on the improvement of healthier life-style as well as support their families.
Jittima Jantanamalaka, Citizen News Service (CNS)
(The author is the Director, Jay-Inspire Inc, Thailand. Website: www.jay-inspire.com)
- Scary pictures not to dissuade Russian smokers: Poll - May 13, 2012
- China may raise tobacco price to curb consumption - Mar 12, 2012
- China to curb smoking with increased taxes - Mar 10, 2012
- Tobacco tax hike could curb smoking - Jun 03, 2010
- Thai Rock Band Urge Youth to stay away from Cigarettes - May 31, 2009
- Giving up menthol ciggies may be harder for some smokers - Dec 21, 2010
- 'Cigarettes will be stubbed out by 2050' - Jan 09, 2011
- Nicotine reduction strategy 'should be made an urgent research priority' - Oct 02, 2010
- Like India, Russia to scare smokers with grim pictures - May 11, 2012
- Cigarettes, bidis costlier in Himchal - Apr 01, 2011
- Washington State approves cigarette tax increase - Apr 14, 2010
- Putting tobacco out of sight helps put it out of mind: Study - Nov 24, 2010
- Brain imaging demonstrates that former smokers have greater willpower - Apr 27, 2011
- Brazil bans smoking in public spaces - Dec 16, 2011
- Smoking can kill 40 mn more people - Oct 05, 2011
Tags: baht, cigarette price, cigarette tax increase, executive secretary, government of thailand, government policy, health foundation, health tax, household income, income group, life style, number of smokers, prevalence, public television, retail price, roll cigarettes, tax burden, tobacco tax increase, tobacco use, world bank