The Thailand tobacco industry contributes significantly to Thailand’s economy, the Bangkok Post quoted a report from Oxford Business Group as saying. In 2022 alone, the tobacco industry generated almost THB60 billion ($1.71 billion) in excise taxes, accounting for 12 percent of the country’s total tax revenue that year. Additionally, the country exported THB7.4 billion worth of tobacco and related products the previous year.
Thailand tobacco industry boosts economic development
To support public health initiatives, the country allocates THB4.1 from its tobacco-related tax collections to the Thai Health Promotion Foundation annually. However, it is worth noting that the tobacco industry impact goes beyond economic benefits.
Oxford Business Group’s director of PR, Marc-Andre de Blois, highlights that the tobacco sector plays a crucial role in sustaining rural communities and livelihoods, particularly in the northern and northeastern parts of the country.It directly and indirectly supports approximately 50,000 households. De Blois also points out that tobacco crops are resilient to adverse conditions such as floods, droughts, and poor soil quality.
While the tobacco industry brings several advantages to Thailand, the Oxford Business Group report underlines the challenges posed by the illicit cigarette trade in the country.
The Thai Tobacco Trade Association reveals that online channels experienced a staggering 97 percent growth in illicit trade between July 2022 and September 2022. Moreover, data from the Excise Department indicates that illicit cigarettes accounted for 30 percent of Thailand’s tobacco market in mid-2021.
