Budget Committee 2027 Urges Excise Department to Reform Cigarette Tax Structure

Bangkok: The Budget Committee of 2027 has called on the Excise Department to expedite reforms in the tax structure for cigarettes and e-cigarettes to curb smuggling and increase government revenue. Committee Chairman Koravee emphasized that the focus is not solely on budget figures but also on monitoring the efficiency of tax spending.

According to Thai News Agency, Mr. Koravee Prisnanantakul, MP for Ang Thong Province and spokesperson for the Special Committee considering the 2027 Budget Bill from the Bhumjaithai Party, announced the progress of budget consideration. He stated that 12 items related to the central budget have been approved, benefiting 37 budget recipients and 5 funds, representing 1.62 percent of all agencies requiring consideration.

During the July 8th deliberation, a significant topic discussed was the Excise Department's budget of 5,554,719,400 baht. Some committee members raised concerns over the substantial decline in revenue from the two-tiered cigarette tax system, with estimates suggesting an annual loss of 10-20 billion baht. The Excise Department representative explained that the declining revenue is due to some consumers switching to lower-taxed products, in addition to the issue of smuggled cigarettes and e-cigarettes. They have been exploring the possibility of converting the cigarette tax to a single-tiered system and are currently gathering feedback from stakeholders.

In addressing the smuggling of untaxed goods such as cigarettes, e-cigarettes, and low-priced imports, which affect government revenue, the Excise Department representative stated that measures have been established to prevent and intercept smuggling. This is being done through integrated collaboration with the Customs Department and other relevant agencies, addressing the entire supply chain from upstream to downstream.

"This year is the first year that the proceedings will be broadcast live, so the public will be able to follow the committee's work through the channels of the House of Representatives. In our meetings, we don't just consider the budget; we consider how every baht of taxpayers' money will be used effectively," Mr. Koravee said.

Ms. Natthida Thepsutin, a Pheu Thai Party list MP and spokesperson for the committee, stated that regarding the Treasury Department's budget of 6,443,359,600 baht, some committee members proposed a review of the utilization of state land. The Treasury Department clarified that the issue of private occupation of state land has been addressed through the "Treasury for the People" project since 2019. This project aims to regulate public use of state land, with over 119,800 people having participated and approximately 15,000 currently in the process of registration. Those granted rights can sign lease agreements and use the documents to apply for house registration, electricity and water services, and loans. In fiscal year 2027, there are plans to adjust the management approach for state land long-term private leases, opening opportunities for qualified citizens to lease the land. This is to ensure transparent and fair allocation, maximizing benefits for the public and the country.