I have a strong reason to oppose the recent decision by the Finance Ministry to delay an increase in excise tax on cigarettes for another two years, from next year to October 2021. The delay doesn't spell good news for the state coffers, which is one consideration. Another concern is that it would deal a harsh blow to the state's efforts to discourage young smokers.
The decision must have been influenced by a petition from the state-run Thailand Tobacco Monopoly (TTM) stating that the single-rate 40% higher levy would harshly affect sales revenue. It would also impede on the state agency's plan to buy tobacco from local farmers.
Wichit Chantanusornsiri is a senior economics reporter, Bangkok Post.
