Huge Tax Hikes On Liquor And Cigarettes

[mikethevigoman]

Does anyone know someone that has said " right,thats it ,too expensive for me ,im giving up smoking and drinking " ? i doubt it, and the governments know it,.

Edited August 29, 2007 by mikethevigoman

[Mid]

Finally, I would rather see a tax hike on tobacco, which punishes only the smokers

take the blinkers off ............................

[PaulHamon]

IT'S NOT ABOUT GIVING UP, ITS ABOUT STOPPING NEW PEOPLE TAKING IT UP...

1945 ~ Just like all other foods or there abouts.

1998 ~ 64% of retail price of a packet fags is tax!

Men Australia

In 1945 72.0%

In 2004 18.6%

Women Australia

In 1945 26.0%

In 2004 16.3%

The tax increase will not stop current smokes but it can stop new people taking it up,

it's a shame the INCREASE is NOT ENOUGH, but I'm sure that will change.....

[britmaveric]

Waste of time.....

[esbobes]

Governments in every country love to tax alcohol and cigarettes. It is a win-win for them as firstly it increases revenue and secondly they claim they are doing so to reduce consumption and hence benefit the community.

Its great people have to stop smaoking and drinking

Both Thai and Farang.

Lets all Thank Govt for doing a great Job

Its interesting when people no matter wher they live get sick from drining or smoking want the Govt to make them better.

I say smokes and drinkers shall pay no taxes and get no medical how will you like that you sick cry babies

[jts-khorat]

Its interesting when people no matter where they live get sick from drinking or smoking want the Govt to make them better.

I say smokes and drinkers shall pay no taxes and get no medical how will you like that you sick cry babies

Another one of the health Nazis. I do not disagree with the tax hike per se (only with its timing), but with mindless drivel like yours.

Ever heard of free choice?

But better also not to:

- stay in the sun, it gives you skin cancer (difficult to do in Thailand, but there you go)

- stop eating A LOT of food stuffs, because they are not good for you

- doing outdoor sports, just too dangerous

- breathing, I heard that might make you sick as well.

But then so does stop breathing :-)

Edited August 29, 2007 by jts-khorat

[taxexile]

tax increases WILL (slowly) reduce demand , just as they have done everywhere else , and hopefully this government will continue to regularly implement increasingly punitive taxes so that people will have to think twice before overindulging themselves with these substances , that when taken in large amounts cause undeniable and well evidenced problems for the users , and those associated with them one way or another.

what family wants to watch a loved one fading away with emphysema or cancer , and who wants to be on the receiving end of an alcohol fuelled attack from a drunk or be in the way of a car driven by a drunk , (or for that matter have to listen to the repetitive senseless droolings and rantings of the bloke down the pub who just has to tell you that story again for the 10th time that night..... whilst dropping ash over you and breathing beery cigarette breath in your face )

rack up those prices i say.

[TAWP]

So all the normal people should pay more since you found a drunk slob to be annoyed over?

How about just HE pays more? Sounds fair?

[taxexile]

How about just HE pays more? Sounds fair?

maybe they should have a normal price for your first 3 drinks or cigarettes , and then increase the price of the fourth by 40% and the fifth by 50% etc.

yes , unworkable , i know.

[Carmine6]

How about just HE pays more? Sounds fair?

maybe they should have a normal price for your first 3 drinks or cigarettes , and then increase the price of the fourth by 40% and the fifth by 50% etc.

yes , unworkable , i know.

No, once they're really drunk, just charge for extra drinks.

[manjara]

Quite a good move for an interim Government that is not contesting the elections to implement unpopular legislation.

It would be hard for an elected Government to push this through, but I think that everyone would agree that less smoking and drinking is generally a good thing for the country (and if it doesn't, then at least there's more revenue to spend on other things!)

[Donnyboy]

How about just HE pays more? Sounds fair?

maybe they should have a normal price for your first 3 drinks or cigarettes , and then increase the price of the fourth by 40% and the fifth by 50% etc.

yes , unworkable , i know.

No, once they're really drunk, just charge for extra drinks.

unless the drunk vomits, then is he entitled for a refund?

[CTM]

The level of hatred, ignorance and intolerance of the anti-smoking and anti-drinking crowd never ceases to shock me.

Sorry to bust you kiddies bubble but raw tobacco is about B120 a kilo at the market. This won’t stop the majority from smoking. A kilo would last the average smoker almost a year.

Ditto on booze. People will just switch to cheaper brands and smuggled goods. When the neighbor countries still sell for a pittance, it isn’t that hard to smuggle in at a profit

[britmaveric]

Black market will increase with the higher prices. However even with this small increase won't have much impact for most people.

[westcoastnative]

Laws like this one are silly and hypocritical. If they really wanted to stop alcohol and cigarette use they would ban it completely not use a band aid approach to fix the problem. The sad truth is we need people who smoke and drink in our societies. There is huge amounts of money that is generated in tax revenues and money that goes into research for diseases, pharmaceuticals and hospitals that wouldn't be available if people didn't use these drugs and get the diseases that go along with them.

[Carmine6]

How about just HE pays more? Sounds fair?

maybe they should have a normal price for your first 3 drinks or cigarettes , and then increase the price of the fourth by 40% and the fifth by 50% etc.

yes , unworkable , i know.

No, once they're really drunk, just charge for extra drinks.

unless the drunk vomits, then is he entitled for a refund?

Maybe that resets the counter so the next drink is taxed as if it's the first one.

[ratcatcher]

"Cigarettes have inelastic demand curves, price changes have little effect on demand."

That is simply untrue. How do you account from the huge drop in smoking in the US, education? Baloney! As with most other commodities, higher prices lead to lower demand. I'm not sure that a 3THB increase is sufficient. Regardless, congratulations to the Thai government for getting this one right.

Higher prices(for most commodities) lead to lower demand.? The price of petrol has gone up significantly here in Thailand and all over the world, yet there are more cars on the road than ever.

I wonder just how expensive a Big Mac and similar products would have to be before Americans and other notably obese populations would cut back on junk food. After all, heart disease and related problems are expensive for governments and it's not only smokers and drinkers that cause the problem.

I think the move is a political one, after all the interim gov't stands to lose nothing by raising prices and there's a lot of money to gain.

Anyway those that want will find a way to get regardless of price.

Edited August 29, 2007 by ratcatcher

[HunkeyDorey]

community benefits dont come much better than that.

It's the local Thai's that will be afected, not so much the Farang.

Expect a Large increase in the number of Break-ins and thefts of Booze. Watch the papers.

LOCK UP YOUR BARS WELL!

Expect that the bars will hike up the prices immediately on their old stock!

Expect watered down spirits

Expect people will drink the same amount with less money to spend on other essentials

community benefits dont come much better than that.

DON'T BE NAIVE.

Have a nice day

Hunkey Dorey

[Aujuba]

I agree with economists on this one. It will ahve some kind of an effect in reducing the number of smokers over time. Most people don't have money like the foreigners who are chain smokers. In Thailand people still buy one or two cigarettes from small shops. This could help reduce the number of poor people who smoke. I feel that anything against the corporations getting rich exploiting poor people is good.

[TAWP]

Yes, government getting rich of poor people is so much better.

[Aujuba]

If you can afford a computer you definitely aren't poor so don't worry. Poor people won't be buying cigarettes so the wealthy who will buy will be paying the government.

No one needs a cigarette except addicts who were addicted due to their availability and cheap prices. in the future with higher prices there should be less addicts.

BTW Farmers that desperately need a smoke can easily grow their own tabacky.

[womble]

"Cigarettes have inelastic demand curves, price changes have little effect on demand."

That is simply untrue. How do you account from the huge drop in smoking in the US, education? Baloney! As with most other commodities, higher prices lead to lower demand. I'm not sure that a 3THB increase is sufficient. Regardless, congratulations to the Thai government for getting this one right.

The demand curve for Cigarettes is inelastic. Higher prices for commodities do not always lead to lower demand it all depends on the elasticity. Take a look at petrol, oil fetching near record prices and demand is the highest it has ever been.

A persons income has an effect on the elasticity of cigarettes as they are normal goods, as a persons income increases the demand curve will shift to the right, basically they are able to afford more cigarettes. As a persons income decreases they can afford less cigarettes, they will then start looking for substitutes of which for cigarettes there are many, as consumers start to buy substitutes the demand curve will shift to the left.

Higher prices will put off new people taking up smoking, but those who smoke already will be forced to pay higher prices or substitute. Over the long term price hikes will effect demand as old smokers die off and new smokers take up the habit in smaller and smaller numbers. This is very long term. In the short term the effect are small and hardly felt.

[nikster]

"Cigarettes have inelastic demand curves, price changes have little effect on demand."

That is simply untrue. How do you account from the huge drop in smoking in the US, education? Baloney! As with most other commodities, higher prices lead to lower demand. I'm not sure that a 3THB increase is sufficient. Regardless, congratulations to the Thai government for getting this one right.

Agreed

Am I correct in the assumption that the non-smokers applaud this move while the smokers find it outrageous?

In any case, this is one of the few things this government has done right. Tax it more if anything, esp. cigarettes. With alcohol the effect is not as clear-cut b/c of the local rice whiskey production. Making people drink more home-brewed rice whiskey is certainly not the way to improve population health...

[TAWP]

If you can afford a computer you definitely aren't poor so don't worry. Poor people won't be buying cigarettes so the wealthy who will buy will be paying the government.

With 'poor' members of this forum wasn't adressed.

It's a well known fact that people with low income toa higher degree smoke than people with for instance a high degree.

I for one don't smoke and never intend too. Doesn't mean I support this however.

[Phil Conners]

Cigs up by 2-3 baht? As usual they raise the taxes enough to increase their income substantially without hurting the consumption rates.

Increase tobacco by 10x and we'll start see some impact.

As for alcohol, I don't really care, I don't have to drink other peoples puke.

[nikster]

Higher prices will put off new people taking up smoking, but those who smoke already...

And that is a bad thing how?

There's also a huge difference between oil prices and cigarette prices - oil is essential to people's livelihood and the prices will need to go much, much higher in order to really affect demand in the short term. Smokes are not essential to anyone's livelihood. You don't have to smoke, you can just stop.

It's up to anyone to indulge in their own addictive habits, I do not mind the least - as long as it doesn't affect me. I do not support such behavior when it ends up polluting my air - that's just extremely rude.

Reducing the number of people addicted to cigarettes is a good thing.

[skipper]

claim they are doing so to reduce consumption and hence benefit the community.

fewer smokers = fewer deaths , disabilities and family bereavements from lung and heart disease.

lower alcohol consumption = fewer road deaths and fewer alcohol related crimes (such as rape , crimes of violence and spousal abuse.)

community benefits dont come much better than that.

Cigarettes have inelastic demand curves, price changes have little effect on demand.

Governments the world over love to claim they are trying to help us, but economic theory proves they are bullshitting us..............

If we all stopped drinking and smoking they'd be in a right mess when it comes to tax collection.

S0 very true

Edited August 29, 2007 by skipper

[BlackArtemis]

So, I wonder what they are going to do after the continue to tax (this is just one step) and soon realize the level of Yaabaa, glue, and homemade alcohol consumption has increased. It's cheaper to make your own brew and toss a little mosquito coil into it for a "kick"...

But seriously, now I just pay 90-150 baht more when I go out to the pubs.

[mrbojangles]

You don't have to smoke, you can just stop.

Believe me, if it was that easy, we wouldn't smoke.

I do not support such behavior when it ends up polluting my air - that's just extremely rude.

The ozone layer isn't depleting due to cigarrettes but i bet you fly around the world and drive a car or motorbike or taxi and use electric etc

[womble]

There's also a huge difference between oil prices and cigarette prices - oil is essential to people's livelihood and the prices will need to go much, much higher in order to really affect demand in the short term. Smokes are not essential to anyone's livelihood, You don't have to smoke, you can just stop.

Believe me, if it was that easy, we wouldn't smoke.

Petrol and cigarettes are similar in that they are both inelastic goods.

Cigarettes are essential to those addicted to them, ask any of the smokers on this forum to confirm that for you.

It's not as simple as just giving up, which is why the government can raise the taxes knowing full well it will have little effect on demand. A rise in price will have an effect, but a small effect in relation to the rise in price.