TTM has about 90 percent of the market share and foreign brands have the rest. Sales of imported cigarettes are estimated to grow another 15 to 20 percent in 1999 as a result of increased popularity and competitive prices. And they also agreed to apply tariffs of 0 to 5 percent by the year 2000 on 90 percent of their total dutiable items. Therefore, Malaysia is replacing Hong Kong as the Asian hub for cigarette manufacturing due to its cheaper labor and to more favorable trading arrangements. The importation of cigarettes into Thailand can be very difficult.
Excise department issues a letter to the security printer to release the stamps.
Stamps must be displayed on each cigarette pack. The excise department is also responsible for taxes. And each province, except Bangkok, are charged up to 1 baht per pack of cigarettes for financing municipal events and activities. For 1999, cigarette production is projected to reach 30 million pieces as compared to 34 million a year ago. Domestic consumption is forecast to drop to 34 million, down 9 percent in 1999.