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Section BSection B

What Is the Impact of Tobacco Tax Increases in Thailand?

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Source: Excise Department, Ministry of Finance, Thailand.

Effect of Tax Increase on Sales and Revenue, Thailand

1993 1994

Tax as percent of retail price 55% 60%

Sales in millions of packs of cigarettes 2,135 2,328

Revenue in millions of baht(If tax not increased)

15,34520,002

(17,000)

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Source: Excise Department, Ministry of Finance, Thailand.

Excise Tax: Sales and Revenue, Thailand, 1992–2006

Year Tax (%)Sales

(millions of packs)Tax revenue(million baht)

1992 55 2,035 15,438

1993 55 2,135 15,345

1994 60 2,328 20,002

1995 62 2,171 20,736

1996 68 2,463 24,092

1997 68 2,415 29,755

1999 70 1,810 26,708

2000 71.5 1,826 28,110

2001 75 1,727 29,627

2002 75 1,716 31,247

2003 75 1,904 33,582

2004 75 2,110 36,326

2005 75 2,187 39,690

2006 79 1,793 35,646

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Source: Excise Department, Ministry of Finance, Thailand.

Before tax policy

(1990–1993)

After tax policy(1994–2006)

Average tax revenue per year in millions of baht

15,535 29,554

Financial Gains from Tax Policy, Thailand

Average increase of tax revenue per year 14,109 million baht

Equal to $400 million USD

Total increase of tax revenue (1994–2006) 182,247 million baht

Equal to $5,201 million USD

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Source: adapted by CTLT from Levy et al. (2007).

Decline in Smoking Prevalence after Tax Increases

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Contribution of Each Policy Intervention

Source: adapted by CTLT from Levy et al. (2007).

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Dedicated Tobacco Tax

After succeeding in advocating for tobacco tax policy, developed dedicated tax policy for tobacco control: Earmark proportion of tax revenues from tobacco for

tobacco control

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Best Practice in Thailand

Health Promotion Funding Act (2001) Establishment of Thai Health Promotion Foundation Funding came from 2% of alcohol and cigarette taxes Used to promote and support health promotion in the

population (all ages) in accordance with national health policy

Tobacco and alcohol companies pay an additional 2% of excise tax (approximately $40–50 million USD per year)

The amount goes directly to the Health Promotion Office to be used for health promotion programs, including tobacco and alcohol control

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Tobacco Control Programs Supported by Thai Health

Media campaign

Law enforcement

Advocacy programs

Policy development

Strengthening community-based programs, including cessation

Research

Capacity building, networking, and alliances For more information

www.thaihealth.or.th

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Summary

Tobacco tax is a win-win policy Generates revenue for government Decreases tobacco consumption

Proportion of tobacco tax should be earmarked to fund tobacco control programs