Cigarette makers still adjusting to new excise structure
Following the new tobacco excise-duty structure that came into effect on September 16, cigarette-makers including Thailand Tobacco Monopoly and several importers – Philip Morris (Thailand) among them – are continuing to adjust their retail prices.
Gerald Margolis, managing director of Philip Morris (Thailand), announced to its trade partners on Monday new suggested retail prices ranging from Bt60 to Bt165 per pack for the company’s brands, with immediate effect
“We needed to increase the suggested retail prices of most product variants because of the increased tax incidence imposed on our brands, which are in the premium and mid-price segments and subject to a higher tax rate.
“Prior to our price changes, all products in our portfolio were subject to the 40-per-cent ad-valorem tax rate, as opposed to the 20-per-cent rate applied to products at Bt60 and below. For nearly all of our products, we have increased prices to reflect the taxes the government expected to earn per pack; in line with the government’s revenue target.
“We have priced one brand variation at Bt60 and subject to the 20-per-cent ad-valorem tax rate. This decision was made to maintain our competitiveness in the market.”
