Government to Reduce Thai Rice Export Tax

[webfact]

 

By Paphamon Arayasukawat

   

BANGKOK (NNT) - The Cabinet has approved in principle the Commerce Ministry’s plan to reduce surcharges for Thai rice exporters on rice shipments under the EU and UK quotas.

 

Deputy government spokeswoman Rachada Dhnadirek said the export surcharge has been reduced to 1,500 baht per ton for grains bound for the EU and 1,200 baht a ton for shipments to the UK. The surcharge cut is meant to increase the competitiveness of Thai rice exporters in the two markets.

 

According to the Commerce Ministry, the Foreign Trade Department introduced the surcharge for rice exporters under a quota agreement with the EU in 1997 to raise proceeds for the International Trade Promotion Fund. Rice exporters had to pay a surcharge of 2,500 baht per ton, and exporters who buy rice from millers for export must pay a tax of 0.75% of export value.

 

Ms Rachada said Thai rice exports face fierce competition from countries such as Vietnam, which can produce high-quality and better varieties of rice to meet the demands of trade partners, adding that reducing the surcharge means that the International Trade Promotion Fund will have to forego about 31 million baht a year.

 

-- © Copyright NNT 2021-04-29

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

[Venom]

What, no mention of the horrendous PM2.5 air pollution that inundates the country for five months of the year from burning the fields starting in December (tourist season) that turn beautiful Thailand into a living hell? ???? 

[mtls2005]

So the government is going to subsidize rice producers - that hasn't always worked out well - and pay them, a portion of the EU/UK surcharge, directly.

 

All to remain "competitive".

 

Honestly a troop of monkeys could govern better with some darts and a dart-board.

 

 

[realfunster]

4 hours ago, webfact said:

Ms Rachada said Thai rice exports face fierce competition from countries such as Vietnam, which can produce high-quality and better varieties of rice to meet the demands of trade partners,

 

She's a witch- burn her. Blasphemy, blasphemy !

This is simply not possible, we all know Thai rice is the best in the universe. 

[realfunster]

4 minutes ago, mtls2005 said:

So the government is going to subsidize rice producers - that hasn't always worked out well - and pay them, a portion of the EU/UK surcharge, directly.

 

All to remain "competitive".

 

Honestly a troop of monkeys could govern better with some darts and a dart-board.

 

 

 

It doesn't even sound like they are doing that, the tariff reduction appears to be for 'exporters' only.

I very much doubt this will trickle down in a meaningful way to the average rice producer...

[mtls2005]

Yeah, by "rice producers" I did not mean farmers. 

 

I meant the larger companies who buy rice from farmers, process it, and then sell (commodity/wholesale) or export it.

 

I confess to being very unaware of the rice supply chain, incl export. But expect any subsidy will go to those who are probably quite well off already?

 

 

[Cake Monster]

49 minutes ago, realfunster said:

 

She's a witch- burn her. Blasphemy, blasphemy !

This is simply not possible, we all know Thai rice is the best in the universe. 

It was possibly the best, but other Countries have overtaken Thailand in not just Quality, but are more competitive on price and delivery.

Reducing these Taxes is just a small gesture, and a whole lot more needs to be done to make Thai Rice cost effective to the World Buyers.

[Isaan sailor]

35 minutes ago, Cake Monster said:

It was possibly the best, but other Countries have overtaken Thailand in not just Quality, but are more competitive on price and delivery.

Reducing these Taxes is just a small gesture, and a whole lot more needs to be done to make Thai Rice cost effective to the World Buyers.

Agreed.  In addition, BoT could and should do more to reign in the overpriced Baht.

Edited April 29, 2021 by Isaan sailor

[Cake Monster]

9 minutes ago, Isaan sailor said:

Agreed.  In addition, BoT could and should do more to reign in the overpriced Baht.

The BOT have very little room to maneuver over the Baht.

Ever increasing Household Debt, which is currently at about 89 % of GDP, has limited their powers to be able to reign in the Baht

 

[khunPer]

I'm surprised that exports are taxed, normally the foreign currency itself is a benefit for a nation, but there probably is much I don't understand about Thailand...????

[spidermike007]

And why was there an export surcharge there to begin with? Scalping importers is not enough? Adding an export surcharge to a commodity that is already overpriced, is about as productive as importing rice into Issan.