Thailand
Thailand: Apisak stymies proposed cigarette tax
The Public Health Ministry’s proposed tax hike legislation on cigarette packs, aimed at subsidising expenses of the gold card healthcare scheme, has to comply with the Finance Ministry’s fiscal discipline regulations, says Finance Minister Apisak Tantivorawong.
Mr Apisak said he has not been notified of the move to raise the levy by two baht per cigarette pack to support public health services through legislation.
The ministry did not initiate this policy and such a law cannot be drafted until it is assessed whether it would be in accordance with the Fiscal Discipline Act, he said.
The Act does not permit other state agencies to propose a law on tax collection or fee hikes, known as an earmarked tax, where the revenues are reserved solely for a specific group or usage, said Mr Apisak.
A state agency has to receive the Finance Ministry’s approval if it wants to make such a proposal, he said.
“If there is [legislation] for such a tax hike, there has to be an assessment of the proposal details [by the Public Health Ministry]. As far as I know, the gold cards scheme is running short of money,” said Mr Apisak.
“The Public Health Ministry is trying to seek sources to fund the scheme. They might think that cigarettes are a health concern, so it is possible to extract money from this. One would have to question the Public Health Ministry for their opinion on this matter because I am not aware of any [development] at this point. I am not aware of what they are considering or proposing.”
Patchara Anuntasilpa, director-general of the Excise Department, which oversees the licence for tobacco and cigarette tax, said he is not aware of details on the proposed legislation to fund public health services by increasing the cigarette tax.
Further questioning has to be made of state officials, said Mr Patchara.
Source: https://www.bangkokpost.com/business/finance/1550162/apisak-stymies-proposed-cigarette-tax