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This study examines the impact of tobacco tax increases in Thailand, focusing on the effect on sales and revenue. It highlights the financial gains achieved through tax policy and the subsequent decline in smoking prevalence. The establishment of dedicated tax policies for tobacco control and the best practices in Thailand are also discussed, including health promotion funding and the use of tobacco tax revenues for tobacco control programs.
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Section B What Is the Impact of Tobacco Tax Increases in Thailand?
Effect of Tax Increase on Sales and Revenue, Thailand Source: Excise Department, Ministry of Finance, Thailand.
Excise Tax: Sales and Revenue, Thailand, 1992–2006 Source: Excise Department, Ministry of Finance, Thailand.
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 Source: Excise Department, Ministry of Finance, Thailand.
Decline in Smoking Prevalence after Tax Increases Source: adapted by CTLT from Levy et al. (2007).
Contribution of Each Policy Intervention Source: adapted by CTLT from Levy et al. (2007).
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
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
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 Tobacco Control Programs Supported by Thai Health
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