Taxes for liquor and cigarettes were increased yesterday, with government officials projecting the tax hikes will generate an additional 12 billion baht in revenue for the state each year.
The boost in excise taxes for liquor and cigarettes is also expected to reduce consumption by increasing consumer prices.
Cabinet members approved an increase in taxes for white spirits to 150 baht per litre of 100% alcohol content, up from 120 baht previously. For blended spirits, the tax was increased to 350 baht per litre of 100% alcohol content, up from 300 baht previously.
Cigarette excise taxes, meanwhile, were increased to 87%, up from 85% previously.
Officials estimate that store prices for Marlboro cigarettes should increase by eight baht per pack, six baht for Mild Seven cigarettes and six baht for Krong Thip cigarettes.
Benja Louichareon, director-general of the Excise Department said that the tax hikes were relatively limited as many rates already were at or near the ceiling permitted under the law. Sharp increases could result in more smuggling or tax evasion, she said, adding the Excise Department favoured an overhaul of the entire excise tax structure to allow current rate ceilings to be increased.
This combined with the brutal exchange rates
