Smokers will pay an additional 5-10 baht per pack after a new cigarette excise tax rise comes into effect at midnight Tuesday. The cabinet on Monday agreed to the cigarette excise tax hike, which targets both value and volume, in hopes of reducing cigarette consumption. Cigarette brands taxed in terms of value hit a ceiling of 90% of ex-factory price, while those taxed in terms of volume face a rise of 1.1 baht per gramme from 1 baht per gramme, a source at the Government House said. The tax rise will add an estimated 12 billion baht in government revenue for the remaining period of this fiscal year. Prices of locally produced and imported cigarettes are now in effect after the cabinet gave approval to the Finance Ministry's proposal to increase excise tax on price and weight. Somchai Poolsavasdi, director-general said the main reason to increase excise tax on cigarettes is that the government wanted to lower tobacco consumption by the people on health reason as statistics showed cigarette smokers are increasing. He said the tax increase will generate higher revenue to the state from 6 billion baht annually to 10 billion baht. He also dismissed concern that the tax increase could spur tobacco smuggling or influx of cigarettes from neighbouring countries, saying cooperation has been sought from the Customs Department to impose stricter control on foreign cigarettes. So far, he said, there was no sign of tobacco hoardings or sign of increasing purchase order for imported cigarettes.