The Thai Tobacco Trade Association (TTTA) endorsed government plans to replace Thailand’s two-tier cigarette excise system with a single-rate tax, arguing the current structure has distorted the market, squeezed retailer margins, and encouraged consumers to switch to cheaper products and illicit cigarettes. The association said a balanced flat-rate tax, combined with stronger enforcement against illegal tobacco, would help stabilize government revenue, improve market competition, and support the country’s tobacco supply chain, while the Excise Department continues its review of the proposed reforms.
