[Intl-tobacco] Thailand: Tobacco Taxes and Health Promotion (fwd)

[Robert Weissman]

Sin taxes to be diverted into new health promotion fund
by Wut Nontharit
Source: Bangkok Post, Sunday, 8/12/01

Two percent of annual state revenue from tobacco and liquor tariffs will
be deducted as contributions to a new health care fund to be set up under
a draft law which sailed through the Senate on Friday.

The Senate voted 94:3 to endorse an amendment to the Health Promotion Fund
bill proposed by cabinet.

Under the draft law, the health promotion fund will be established in the
form of a legal entity with the aim of supporting and encouraging Thais to
keep themselves fit and healthy and refrain from smoking, drinking or
consuming anything bad for health.

The fund will be managed by a 19-member committee made up of state and
private sector representatives. The panel will be chaired by the prime
minister. Each committee member could serve a maximum of two four-year
terms.

A separate seven-member panel will be set up to evaluate the work of the
fund management committee.

To maintain the fund, 2% of state revenue from annual tobacco and liquor
sales, worth some 1.4 billion baht, will be diverted by the Excise and
Customs departments.

Under the bill, the Health Promotion Office founded last year will be
dissolved and its personnel reassigned to run the fund.

However, the Senate warned the government to be more careful next time in
proposing a law authorising deduction of taxes as contributions to a fund.

Such a practice was contrary to financial discipline.