The higher excise tax on cigarettes has hit the revenues of provincial administration organisations (PAOs) and affected their development projects, Niphon Boonyamanee, president of the Songkhla PAO, said on Sunday.
Mr Niphon, who is a member of the Association of Provincial Administration Organisations of Thailand, said the cigarette tax was raised last year and resulted in the PAO's annual income from the tax dropping between 20% and 80%. The average revenue drop was 50%.
The cabinet last February increased the excise tax in an effort to discourage cigarette consumption. As a result, cigarette prices in the country went up. Some smokers had quit, while others turned to untaxed foreign cigarettes which were priced about 60% lower than local cigarettes, Mr Niphon said.
The 14 PAOs of the South Region agreed at a meeting to strictly enforce finance-related ordinances to increase their revenue since the drop in the income from cigarette tax had affected their ability to carry out local development projects.
The 14 southern PAOs also agreed to promote nature tourism in three southern border provinces, which are abundant with natural beauty and local products.
A committee was set up to launch public relations efforts in other Asean member countries to promote tourism in the three southern border provinces.