Fresh thinking needed

A network of tobacco farmers in Thailand is calling on political parties to help ease the impact of a 40 percent rise in cigarette excise tax that is scheduled for October 1, according to a story in The Nation.

Songkran Pakdeejit, president of the Burley Tobacco Farmers Association of Phetchabun, met yesterday with representatives of various political parties to discuss the effect the proposed new tax rate would have on tobacco growers.

Songkran said about 50,000 tobacco-grower households in the North, Northeast, and upper Central regions were already struggling because of annual increases in cigarette tax rates. These increases reduced the state-run Tobacco Monopoly’s cigarette sales and, therefore, its production and the amount of tobacco it bought from local growers.

Growers were very concerned that they were going to lose their livelihoods.

The network has reportedly asked the authorities to delay enforcement of the next tax rise, but has not received a response.

But because an election is due to be held in the next two weeks, Songkran asked the parties to recognize growers’ concerns and bring the issue to the attention of their parties.

At the meeting, the Thai Tobacco Trade Association released a poll result showing most grocery shops were opposed to the tax increase. Jointly conducted by the association and Nida Poll in February, the poll showed 81 per cent of respondents from 1,056 retailers across the country believed the new tax would increase the sale of illicit cigarettes. Ninety-one per cent of respondents said they would be affected by the new tax rate.

The Association director Waraporn Namat said that in the past four to five years the government had gradually increased the tobacco tax rate in the hope of reducing the number of smokers. “But the number hasn’t decreased significantly and instead they opt for buying illicit cigarettes or tobacco which are cheaper,” she added.