Thailand Tobacco Monopoly

The Tobacco Authority of Thailand (การยาสูบแห่งประเทศไทย) (TOAT), is a Thai state enterprise and the sole legal entity permitted to produce tobacco products in the country, mostly cigarettes. It was previously known as the Thailand Tobacco Monopoly (TTM), and operated as a non-juristic state enterprise under the Ministry of Finance until 14 May 2018 when it was corporatized as a juristic organization and assumed its new name. In its early days, the TTM had a monopoly over the manufacturing and distribution of tobacco products. The ratification of the ASEAN Free Trade Area agreement in 1992 meant that foreign tobacco companies could now distribute their own cigarettes in Thailand, and foreign companies could share in the Thai market. As of 14 May 2018, the Thailand Tobacco Monopoly was corporatized as the Tobacco Authority of Thailand. According to the Tobacco Authority of Thailand Act 2018 as announced in the Royal Thai Government Gazette, the act allows TOAT to set up limited companies or public companies related to TOAT&s;s business. These companies are permitted to have foreign shareholders hold up to 49 percent of total company shares. TOAT can also hold shares in other companies if relevant to TOAT&s;s business.