Smoking: Industry hit by new taxes as illegal foreign cigarettes flooding in
Sanook reported that the tobacco industry was in turmoil as illegal foreign cigarettes were flooding the market.
Growers of tobacco in Thailand and those selling cigarettes and tobacco products are feeling the pinch.
The story comes after the Thai Tobacco Monopoly said that changes to excise regulations would mean a packet of the cheapest Thai cigarettes would rise from 60 baht to 90 baht per pack from October 1st this year.
A tobacco retailer in Viphavadee Rangsit road who runs a shop called Cho Huay said that the industry is at its worst level in 30 years.
Ampha Korkiatsakun said he was being forced to sell some brands at a loss as there were no customers and the cigarettes were rotting on the shelves. He said he was experiencing a 70% drop in demand for Thai cigarettes as foreign cigarettes become relatively more competitive.
He could still survive selling foreign brands and loose tobacco – but only just.
Sanook also reported that the rise in taxes is having a major impact on tobacco growers.
They said that in the 2018 fiscal year the TTM sold 10 billion less Thai cigarettes.
While one industry source reported there was a 6.6% rise year on year of illegal foreign imports with no excise stamps.