OrBorJor imposes fuel and tobacco taxes

PHUKET: Banlur Tantivit, president of the Phuket Provincial Administration Organization (OrBorJor), announced on Sunday that the organization has agreed to levy taxes on tobacco and fuel. As predicted in the Gazette (July 1, 1999, issue) the tobacco tax will be 4.54 satang per cigar or cigarette, while the fuel tax will be 4.54 satang per liter. Both taxes are already in effect. Just how much revenue the OrBorJor can expect from the two taxes is unclear. The OrBorJor says it expects to receive around 10 million baht a year. But the Gazette, referring to sales of cigarettes, petrol and diesel in Phuket last year, calculates the figure at closer to 30 million baht. The third tax that the OrBorJor has the power to levy – the “staying fee” on hotel guests, has been put on hold at least until the OrBorJor’s next meeting in October. The two main issues to be dealt at that time will be the level of taxation on the price of a hotel room – 2% or 3%, and the date when it will come into effect – one year or two years from the decision to levy the tax. Again, the revenue the OrBorJor can expect is unclear. In June, Khun Banlur told the Gazette it would be between 30 and 50 million baht, but those in the industry believe the correct figure should be closer to 250 million baht.