• December 10, 2023

Tobacco Key Contributor in Thailand: Report

 Tobacco Key Contributor in Thailand: Report
Photo: PiyawatNandeenoparit

The tobacco industry remains an important contributor to Thailand’s economy, reports The Bangkok Post, citing a report by Oxford Business Group.

In 2022, the tobacco industry contributed nearly THB60 billion ($1.71 billion) in excise taxes—12 percent of Thailand’s total tax take that year. The previous year, Thailand exported THB7.4 billion worth of tobacco and related products.

Annually, Thailand directs THB4.1 of its tobacco-related tax collections to the Thai Health Promotion Foundation.

“In addition to being a significant contributor to Thailand’s economy, our research found that Thailand’s tobacco sector is an important employer and is crucial to rural communities and livelihoods, especially in the north and northeast of Thailand,” Marc-Andre de Blois, director of PR for Oxford Business Group was quotes as saying.

The industry supports nearly 50,000 households directly and indirectly, according to De Blois, who says that the crop is resilient to floods, droughts and poor soil conditions.

The Oxford Business Group report also highlights the challenges presented by the illicit cigarette trade in Thailand. According to the Thai Tobacco Trade Association, illicit trade through online channels grew 97 percent between July 2022 and September 2022.

Data from the Excise Department shows that illicit cigarettes accounted for 30 percent of the Thailand’s tobacco market in mid-2021.