Thailand’s Excise Department is preparing to replace the current two-tier cigarette tax with a single rate, aiming to improve revenue collection and remove pricing distortions. Cigarettes priced up to THB72 ($2.16) per pack currently face a 25% tax, compared with 42% above the threshold, resulting in more than 95% of cigarettes being priced at the low end. The proposal is under review before submission to the Finance Ministry, with the policy direction expected by October 2026.
Separately, the department plans to require excise tax to be paid upfront on cigarettes for export, with refunds issued after Customs confirms the goods left Thailand. The measure is intended to prevent tax-exempt export cigarettes from being diverted into the domestic market and is expected to take effect by end-2026.
Thailand is also expanding data-led enforcement against illicit tobacco. In the first 11 months of fiscal 2026, the Excise Department recorded 35,739 enforcement cases, up 5.8%, while estimated fines rose nearly 15% to THB6.27 billion ($188 million). Tobacco offences increased 32.7%.
