Thai retailers urge government to reassess import taxes on luxury goods

[webfact]

 

The Thai government is being implored to reassess the import taxes imposed on luxury goods to mirror the tax rates in neighbouring countries. This is a strategic move aimed at attracting foreign tourists and bolstering the competitiveness of Thai small and medium-sized enterprises (SMEs) against established foreign brands in the country.

 

The call for this revision comes from Yol Phokasub, the President of the Thai Retailers Association (TRA) and the CEO of Central Retail Corporation (CRC). Yol voiced concerns that if the import taxes on luxury goods remain unchanged, it could hamper Thailand’s potential to maximise gains from the upturn in tourism.

 

Yol expressed an optimistic view of the short-term economic stimulus policies that the government has recently rolled out, stating that they seem to be steering towards the right direction. However, he also noted that the pace and immediate impact of these policies will largely hinge on the government’s implementation.

As local consumption is a substantial contributor to the country’s GDP growth, Yol stressed the importance of bifurcating the economic stimulus measures into two categories. The first category aims to incentivise high-spending customer groups to maintain their current spending levels.

 

The second category seeks to help customers with lower spending power by reducing their living costs. Yol suggested the introduction of digital wallets as a feasible solution.

 

by Alex Morgan

Image by TRMK

 

Full story: The Thaiger 2023-09-26

 

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[RichardColeman]

That mean a box of Alpen will go down from £6 a box to £5.80 ? 

[Enzian]

This goes along with the article above worrying about the economy in general. Thailand is becoming less competitive in various ways--talent pool, political stability, taxation policies, control of corruption, lack of competition in retail, and on--and the new government is responding with talk about handouts and debt suspension which will just create moral hazard.

Ah, the good old days! Sanook is great when the tide is rising for everyone, but atm the tide is going out for many parts of the world, and Thailand is in a holding pattern for the status quo. "Competition" in general seems to be a dirty word for the Thai elite, and I've yet to see that PT party is any different in this regard. But today the baht is headed toward 36.5; there's always a silver lining!

[Sydebolle]

That is a contradictory move. Only with high import duties it makes it worthwhile for the powers-to-be to bypass the official channels. Be it tobacco, booze or luxury consumer good items, the internet is full of grey market supplies and I would not want to screen all those closed pick-ups or trunks of the Mercedes with Bangkok plates on "duty free" supplies. 

But, as a former minister of commerce once said, those taxes, import duties and excise fees are there to communicate, that the government is taking it "from the rich" - forgetting, that the rich a) do not care and b) have plenty alternatives. 
Some countries invoke duties to protect local production which, if you ask me, hardly can be the case with that sludge of unquaffable wines and Thai cheeses have not made it onto a Michelin-rated table either .......... 

[hotchilli]

5 hours ago, webfact said:

The Thai government is being implored to reassess the import taxes imposed on luxury goods to mirror the tax rates in neighbouring countries.

And loose precious revenue.. no chance.

[Enzian]

1 hour ago, hotchilli said:

And loose precious revenue.. no chance.

The point is that there is are optimal rates for different classes of goods that would maximize total revenue. And though it's hard to be precise what those rates are, the present rates are almost certainly too high. So either they are too stupid to understand that, or they don't care. Setting aside protectionism and the like, I think that they don't care, because with lower rates the upper middle class might look too much like themselves, and can't have that. 

Edited September 26, 2023 by Enzian

[Srikcir]

8 hours ago, webfact said:

The first category aims to incentivise high-spending customer groups to maintain their current spending levels.

So impose new higher taxes on resident expats that may instead lower their current spending levels or cause them to leave the country. Devious!

8 hours ago, webfact said:

help customers with lower spending power by reducing their living costs.

Or provide them with higher wages and skills that will increase their standard of living and reduce income inequality. 

 

[connda]

Thai retailers urge government to reassess import taxes on luxury goods

 

Yeah, roll back the taxes on high-end luxury goods as the obscenely wealthy don't like paying taxes.
Just tax the import goods that the commoners, plebeians, and little-people use.