Foreword by Regional Director for the document on "Tax policies on tobacco products in Thailand: is there a loop hole?"

Foreword Numerous studies and experiences around the world have demonstrated that price measures are an effective way of reducing tobacco consumption. A higher tobacco price through an increase in tax is the most effective tool for tobacco control, and is especially very effective in reducing tobacco use among young people and people with low incomes. Higher tobacco taxes can help a country in a number of ways–by generating additional revenues, reducing tobacco use leading to decreased tobacco-related morbidity and mortality, and thus ensuring reduced expenditure on treatment of tobacco- related diseases. The WHO Framework Convention on Tobacco Control (WHO FCTC) highlights tobacco taxation as a demand reduction measure and suggests that Parties should adopt or maintain measures which may include implementing tax policies and, where appropriate, price policies on tobacco products so as to contribute to the health objectives related to reducing tobacco consumption. However, to make them an effective tool for tobacco control, tax policies should be designed carefully and implemented efficiently. This requires a dynamic tax regime, robust tax administration and intense monitoring and implementation. In Thailand, the tobacco control programme has adopted the tax and pricing policy as a major control instrument, and tax rates on tobacco products have been increased continuously over the past two decades. Consumption of tobacco products has been found to decrease continuously in relation to those of other goods and the prevalence of tobacco use has also fallen gradually. This report, tax policies on tobacco products in Thailand: The way forward, provides a comprehensive account of the tobacco tax system in Thailand with an analysis of its development and the effects on tobacco use over time. Despite the positive outcomes from the tobacco tax and pricing policy, the report has identified certain areas for improvement of the tobacco taxation system to make it more efficacious for tobacco control. The report suggests that tobacco taxation should take into account, among other things, the fact that tax rates on all tobacco products are significantly higher to make the products less affordable, and also that the tax increase policy is linked to the growth in per capita income. It is hoped that the findings of this study commissioned by the Regional Office of the South-East Asia (SEARO) of the World Health Organization (WHO) will be useful for Thailand and other Member countries of the Region and will encourage policy-makers, particularly in the ministries of health and finance, to take appropriate measures to develop and implement effective tax policies for tobacco control among their populations. Dr Samlee Plianbangchang Regional Director