Thailand

Illicit Consumption more than doubled in 2017 to 1.8 billion cigarettes, accounting for 5.5% of all cigarettes consumed in Thailand.
Thailand
Illicit Trade Volume (Bn)
2012 2013 2014 2015 2016 2017
Illicit trade Incidence (%)
2012 2013 2014 2015 2016 2017
Total Tax Loss (THB Bn)
2012 2013 2014 2015 2016 2017

Composition of Cigarette Consumption

33.1Bn Cigarettes
  • Cigarettes
    Bn
  • Legal Domestic Consumption (LDC)
    30.9
  • Non-Domestic Legal (NDL)
    0.4
  • Non-Domestic Illicit
    1.8
Total Cigarette Consumption
33.1Bn
Total Illicit Consumption
1.8Bn

Estimated Excise Tax Loss

THB 4.8 Bn
  • THB
    Bn
    USD Mn
  • Lost excise revenue
    4.4 128.2
  • Lost VAT revenue
    0.4 11.8
Actual revenue from excise duties on tobacco
THB 68.6 Bn
Estimated Tax Loss From Illicit Consumption
THB 4.8 Bn

Thailand

  • 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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