Ministry mulls ‘sin-tax’ fund for the elderly

The Finance Ministry is considering drawing on portions of the so-called “sin tax” allocated to independent organisations to set up a new fund to help the elderly, according to the director of the Fiscal Policy Office (FPO).

FPO director Krisda Chinavicharana said the Finance Ministry has come up with a proposal to redirect parts of sin tax revenues — taxes from cigarette and alcohol sales — from funding allocations to certain organisations to help poor elderly people by building them houses or increasing monthly allowance payments.

Organisations which receive huge financing through sin taxes include the Thai PBS public TV station, The Thai Health Promotion Foundation (ThaiHealth) and the National Sport Fund.

ThaiHealth receives funding worth four billion baht annually, Mr Krisda said, adding that if a fund for the elderly is set up, the ministry may propose redirecting portions of the sin tax from these organisations to be put into the proposed elderly fund.

Meanwhile, Thai PBS received more than two billion baht a year.

The ministry is also studying the possibility of taking part of the sin-tax money from these organisations and putting it into an existing fund for the elderly operated by the Social Development and Human Security Ministry which receives a small allocation, Mr Krisda said.

Mr Krisda also said the Finance Ministry plans to set up the compulsory National Pension Fund, into which people would be required to contribute, which would serve as long-term savings for retirement.

A bill to establish the compulsory fund, expected to start in 2018, has been brought before the cabinet for consideration.