Bangkok: The Department of Economics, Faculty of Economics, Kasetsart University, has released the results of an economic research study on ‘e-cigarettes’, proposing that the government review measures prohibiting imports and sales, and use tax tools and user databases as the main control mechanisms instead of a complete ban.
According to Thai News Agency, Assoc. Prof. Unkang Sae Lim, a lecturer at the Department of Economics and the main researcher, stated that from the collection and analysis of both domestic and international research, it was found that a ban without space for substitute products cannot actually prevent the use of e-cigarettes. While the elasticity of e-cigarette prices to demand is low (inelastic), taxation and control of distribution channels have a better chance of being effective than a ban.
The research is divided into three main areas of study. Firstly, it examines current regulatory approaches. Despite the import ban, there is no systematic monitoring, inspection, or risk assessment system. Many products have slipped online and become popular among young people, especially disposable products that are cheap, easy to use, and easily accessible. Secondly, it focuses on health and behavioral knowledge, noting the lack of official epidemiological or population health research in Thailand that has studied the effects of e-cigarettes, highlighting the necessity to establish a user database and promote continuous data collection to lead to effective policymaking.
Lessons from abroad indicate that many countries, such as the UK, New Zealand, Finland, and several EU countries, have successfully controlled e-cigarette use by employing a ‘policy domain’ approach. This includes collecting specific taxes based on nicotine levels or volumes of use, tracking the age of purchasers and sources of distribution, and using health research data to assess impacts.
Assoc. Prof. Unkang also suggested that if the Thai government were to review the measures, it should start by designing a flexible e-cigarette tax system. This could involve collecting specific taxes (ad valorem or specific tax) that reflect public health costs and having relevant agencies develop a safe user tracking system.
For economic price estimation, the research indicates that if the tax on e-cigarettes is set at a rate of 10% of the retail price, the price of e-cigarettes will increase by approximately 6.87-10 baht per device. If increased to 40%, the price will rise to 12.08-15.55 baht, which is a level believed to slow down consumption behavior among youth.
The research proposals were presented at an academic seminar titled ‘Looking Back 10 Years: Thai E-Cigarette Policy and Current Wounds’, held at the annual academic seminar of the Department of Economics, Kasetsart University. Experts from policy and public sectors exchanged ideas to determine appropriate approaches for the Thai context.
Bans without data and controls may not serve public health needs in the long run. Designing appropriate taxes and data systems is the sustainable solution.