Illegal cigarette trade in Songkhla cripples local businesses
Illegal trade squeezes local vendors as crackdown calls grow louder
The Thai Tobacco Trade Association has raised alarms over the rampant distribution of illicit cigarettes in Songkhla province, which has impacted over 4,000 legal tobacco retailers and forced the closure of about 200 small shops.
Thanyasaran Sangthong, the association’s executive director, revealed that Songkhla ranks second in the country for illegal cigarette infiltration, severely affecting local tax revenue.
The president of the Songkhla Provincial Administrative Organisation has ordered urgent meetings with related agencies to tackle the issue and restore lost tax revenue for local development, aiming to shed the province’s reputation as a hub for illicit cigarettes.
Thanyasaran described Songkhla as the capital of illegal cigarettes in Thailand, having led the nation in illicit consumption rates for decades. Currently, over 90.8% of cigarette consumption in the province is illegal, impacting approximately 4,000 legitimate retailers who are experiencing reduced sales and profits.
Many have opted not to renew tobacco sales licences, leading to a reduction of over 200 shops compared to the previous year. In contrast, the number of illicit cigarette vendors has surged, with some shops reopening after being shut down or preemptively closing before raids, suggesting potential ties to influential figures.
A member of the association who operates a wholesale store reported a decrease in sales from five cartons of cigarettes per week to just three. Retailers struggle to compete with the widespread illegal vendors, who often pair cigarette sales with kratom tea, posing significant dangers.
Illegal cigarette
Despite tobacco control laws prohibiting online sales, illegal cigarettes flourish online, particularly on Facebook, where over 3,000 pages have been identified, some with memberships exceeding 10,000. These pages often promote sales without age verification, posing risks to youth.
The southern region remains a critical area for illegal cigarette activity, with more than 60% of the country’s illicit cigarettes concentrated in six main provinces: Satun (94%), Songkhla (90%), Phatthalung (82%), Phuket (73%), Nakhon Si Thammarat (61%), and Ranong (58%).
Songkhla’s geographical position adjoining a neighbouring country makes it a key route for illegal cigarette smuggling, both by land and sea, leading to significant local tax revenue losses. In 2011, Songkhla collected 80 million baht in tobacco tax, but by 2024, this had plummeted to just 7 million baht (US$216,485), a reduction of over 73 million baht (US$2.26), funds that could have supported local development.
Nationally, with illegal cigarette consumption now at 28.1%, the government is estimated to be losing up to 25 billion baht (US$773 million) annually in tax revenue.
Thanyasaran warned that the illegal cigarette situation in Thailand is at a critical point, with consumption rates climbing from 25.4% to 28.1% within a short period. Without proactive measures from the government to crackdown on illegal trade and enforce laws, this issue could become unmanageable.
Songkhla’s president, Supit Pitaktham, acknowledged the persistent issue of illegal cigarettes in the area, citing inadequate law enforcement as a key problem. He has called for a meeting with all relevant agencies to devise proactive strategies and tangible solutions to restore order and revenue to the province before the illegal trade becomes too entrenched to address.
Thanyasaran noted that over 400,000 legal tobacco retailers remain, though their numbers are declining due to the illegal cigarette problem. The association urges the government to intensify efforts to shut down illegal outlets, pursue offenders, increase penalties, regulate online sales, collaborate with shipping companies, and raise public awareness of the impacts of illegal cigarettes, reported KhaoSod.
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