The Customs Department is preparing to reduce import duties of alcoholic beverages and cigars by 50 per cent for a period of five years, in line with the government's economic stimulus and investment promotion package, reports Bangkok Post.

Director-general Patchara Anuntasilpa said the cuts are in accordance with the Sept 14 cabinet resolution involving plans to revive the post-Covid-19 economy by encouraging wealthy foreigners and highly skilled professionals to stay and work in the country. It is hoped that the programme will attract more than one million qualified people to Thailand over the next five years, generating about a trillion THB over that period. Cuts in import duties will be part of the programme.
Mr Patchara said that about 30 per cent of products are likely to be covered by the planned cuts and ministerial regulations will be announced after the changes are implemented.
Meanwhile, Roengrudee Patanavanicha, a researcher on tobacco control, said the Customs Department's move caught her unprepared because the new excise tax structure for cigarettes is expected to come into effect next month.
Under the new system, a flat tax rate of 40 per cent will be applied to cigarettes, regardless of the retail price. According to the report, she said the new tax could help reduce smoking among teenagers and generate revenue for the state. She dismissed claims that maintaining high cigarette prices will result in an increase in the smuggling of contraband cigarettes.