Ciggies set for 2 baht price hike

Ciggies set for 2 baht price hike

Anti-smoking advocacy groups are rallying behind the government's plan to hike cigarette prices by 2 baht a pack and use the new profits as contributions to the "gold card" universal health insurance scheme.

Dr Prakit Vathesatogkit, executive secretary of the Action on Smoking and Health Foundation, hailed the proposal as a positive initiative.

He insisted it was fitting to charge smokers more for their cigarettes and divert the increment to the gold card scheme, which offers free medical treatment to the public.

According to Public Health Minister Piyasakol Sakolsatayadorn, the Finance Ministry will increase the price of cigarettes by 2 baht a pack. The two ministries have been in discussions for some time about the price hike, which is expected to create 4 billion baht a year of revenue that will be funnelled into the gold card scheme.

"Spending the increment to help offset the expenses [of the gold card programme] means hospitals do not need to wait around for a budget from the government," Dr Piyasakol said.

He said the new source of funding would also improve the cash flow for hospitals that provide medical care under the gold card scheme. Many have complained they were facing a crunch after joining.

The government was also unable to provide sufficient subsidies for them, they claimed.

Dr Piyasakol conceded the gold card programme is a budget-intensive policy.

The hospitals have found it is hard to maintain the same standard of medical care under the scheme, with the average treatment cost per person steadily increasing, according to the minister.

Dr Piyasakol said increasing the cigarette price would motivate people to kick the habit.

Yesterday, Prime Minister Prayut Chan-o-cha said the draft bill, which needs to be passed into law to introduce the policy, has not yet reached the cabinet. It is now being vetted by a related agency.

Dr Prakit, meanwhile, agreed that increasing the price of cigarettes is the most effective way of lowering the number of smokers.

Many countries have adopted similar measures. In Australia, a packet of cigarettes now retails for A$30 (690 baht).

Dr Prakit said statistics show a 10% hike in cigarette prices leads to a 4% drop in adult smokers and an 8-10% drop in young smokers.

The World Health Organisation says one million people are suffering from smoking-related illnesses in Thailand. About 50,000 die from related causes each year.

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