Thailand's Excise Department is restructuring tobacco tax from a two-tier system (25% and 42%) to a single-tier rate, with policy clarity expected by October 2026. The reform aims to recover 10,000–20,000 million baht in annual tax revenue lost to consumers clustering in the lower tax bracket, while eliminating the export tax exemption that enabled re-imported tobacco to re-enter the domestic market. Smuggled tobacco remains the top illicit goods enforcement target, with 35,739 cases in the first 11 months of fiscal 2026.