The case, which began in 2017, centred on accusations that Philip Morris Thailand under-declared prices for cigarettes imported from Indonesia in 2002 and 2003.

A lower court handed down the original US$4 million penalty in 2020 to the local unit of the firm, which owns the Marlboro and L&M brands.

Thailand’s Supreme Court today found Philip Morris Thailand guilty of avoiding tax, but reduced its fine to about US$610,000, according to a court official.

The Supreme Court also reaffirmed decisions by lower courts to drop charges against a former Philip Morris employee.

Philip Morris Thailand branch manager Nhu Ngoc Diep said in a statement that the company disagreed with aspects of the decision and maintained it had “consistently complied with local and international law”.

“We look forward to putting this matter behind us,” she added.

The company previously faced legal action over allegations that it evaded hundreds of millions of dollars in import tax on cigarettes from the Philippines between 2003 and 2006.