 2007 Johns Hopkins Bloomberg School of Public Health Section B What Is the Impact of Tobacco Tax Increases in Thailand?

 2007 Johns Hopkins Bloomberg School of Public Health 2 Source: Excise Department, Ministry of Finance, Thailand. Effect of Tax Increase on Sales and Revenue, Thailand Tax as percent of retail price55%60% Sales in millions of packs of cigarettes2,1352,328 Revenue in millions of baht (If tax not increased) 15,345 20,002 (17,000)

 2007 Johns Hopkins Bloomberg School of Public Health 3 Source: Excise Department, Ministry of Finance, Thailand. Excise Tax: Sales and Revenue, Thailand, 1992–2006 YearTax (%) Sales (millions of packs) Tax revenue (million baht) ,03515, ,13515, ,32820, ,17120, ,46324, ,41529, ,81026, ,82628, ,72729, ,71631, ,90433, ,11036, ,18739, ,79335,646

 2007 Johns Hopkins Bloomberg School of Public Health 4 Source: Excise Department, Ministry of Finance, Thailand. Before tax policy (1990–1993) After tax policy (1994–2006) Average tax revenue per year in millions of baht 15,53529,554 Financial Gains from Tax Policy, Thailand Average increase of tax revenue per year  14,109 million baht  Equal to $400 million USD Total increase of tax revenue (1994–2006)  182,247 million baht  Equal to $5,201 million USD

 2007 Johns Hopkins Bloomberg School of Public Health 5 Source: adapted by CTLT from Levy et al. (2007). Decline in Smoking Prevalence after Tax Increases

 2007 Johns Hopkins Bloomberg School of Public Health 6 Contribution of Each Policy Intervention Source: adapted by CTLT from Levy et al. (2007).

 2007 Johns Hopkins Bloomberg School of Public Health 7 Dedicated Tobacco Tax After succeeding in advocating for tobacco tax policy, developed dedicated tax policy for tobacco control:  Earmark proportion of tax revenues from tobacco for tobacco control

 2007 Johns Hopkins Bloomberg School of Public Health 8 Best Practice in Thailand Health Promotion Funding Act (2001)  Establishment of Thai Health Promotion Foundation  Funding came from 2% of alcohol and cigarette taxes  Used to promote and support health promotion in the population (all ages) in accordance with national health policy  Tobacco and alcohol companies pay an additional 2% of excise tax (approximately $40–50 million USD per year)  The amount goes directly to the Health Promotion Office to be used for health promotion programs, including tobacco and alcohol control

 2007 Johns Hopkins Bloomberg School of Public Health 9 Tobacco Control Programs Supported by Thai Health Media campaign Law enforcement Advocacy programs Policy development Strengthening community- based programs, including cessation Research Capacity building, networking, and alliances  For more information

 2007 Johns Hopkins Bloomberg School of Public Health 10 Summary Tobacco tax is a win-win policy  Generates revenue for government  Decreases tobacco consumption Proportion of tobacco tax should be earmarked to fund tobacco control programs