Total Consumption (legal and illicit) was estimated at 33.1 billion cigarettes in 2017.
Illicit Consumption rose by 120.7% to 1.8 billion cigarettes in 2017, underpinned by an increase in Duty-Free labelled products, such as the “John” brand, and Unspecified Market Variant brands, including “Gold Mount”.
Non-Domestic Inflows were much higher in the southern provinces in 2017, most of which registered double-digit Non-Domestic Incidence levels.
The rise in Non-Domestic Inflows offset a 3.3% decline in Legal Domestic Sales, with Total Consumption registering a 0.5% increase in 2017.
In September 2017, a revised Excise Tax law was implemented which both changed the structure of Excise Tax in Thailand, and increased the applicable tax rates. As a result, the price of the Most Sold Brand of cigarettes rose by 17.6%.
We estimate that the Tax Loss associated with Illicit Consumption rose by 172.0% to THB 4.8 billion (USD 140 million) in the fiscal year 2016/17.
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