Government Plan to Cut Sin Tax Funds Benefits Alcohol, Tobacco
Academics warn that a proposed amendment to Thailand’s Four Funds Act would exempt alcohol and tobacco companies from paying a 2% sin tax that currently funnels nearly ten billion baht a year to ThaiPBS, health, elderly and sports funds. Assoc. Prof. Dr. Smith Sri Sont says the change would benefit only the liquor and cigarette industries while the public gains little, and he is calling for opposition via an online survey before October 14, 2026.
Assoc. Prof. Dr. Smith Sri Sont elaborated that alcohol and tobacco companies have long paid excise taxes, and since 2001 an additional 2% health surcharge has been directed to four state funds: ThaiPBS, Thai Health Promotion Foundation, the Elderly Fund, and the National Sports Development Fund, together worth almost ten billion baht annually. The government’s draft amendment would remove this surcharge, letting the companies keep the money while the state would have to reallocate other budget to fund those four entities. He argued the move clearly benefits the liquor and tobacco sectors, noting research shows the sin tax reduces illness and death. He urged critics to focus on improving each fund’s management rather than abolishing the tax, and invited the public to oppose the bill through the parliamentary survey site, selecting the four relevant acts and submitting their ID numbers before the October 14, 2026 deadline.
