Cabinet Approves Measures to Address Low Tobacco and Shredded Tobacco Prices

Bangkok: The Cabinet has accepted a resolution to address the issue of low tobacco and shredded tobacco prices, in a move aimed at supporting farmers and adjusting tax rates. Ms. Sasikarn Wattanachan, Deputy Government Spokesperson, announced that the Cabinet has reviewed a report by the House of Representatives Committee on Finance, Fiscal Policy, Financial Institutions, and Financial Markets, as presented by the Ministry of Finance (MOF).

According to Thai News Agency, the Tobacco Authority of Thailand (TOT) has introduced strategies to reduce costs and increase income for farmers. This includes utilizing technology to enhance production efficiency, producing tobacco cigars for sale, and purchasing tobacco leaves both within and beyond set quotas for export. The Ministry of Finance, through the Excise Department, is exploring tax restructuring to bridge the gap between legal and illegal cigarettes, while maintaining governmental revenue and supporting domestic farmers.

Efforts to prevent and suppress cigarette smuggling are underway, with the Customs Department developing operational plans and the Excise Department collaborating with relevant agencies to combat illegal activities. The Royal Thai Police is also enforcing measures under the Tobacco Product Control Act.

In addition to these measures, the Ministry of Finance, through the Revenue Department, is promoting alternative crop planting and occupational shifts for tobacco farmers. The Ministry of Agriculture and Cooperatives and the Ministry of Commerce are involved in developing support strategies for farmers, especially if government policies aim to reduce smoking rates.