Cabinet Approves VAT on All Imports Exceeding 1 Baht

[snoop1130]

 

The Ministry of Finance has proposed adding a value-added tax (VAT) on all imported goods worth more than 1 baht. This proposal has been granted preliminary approval by the Cabinet. Aimed at controlling an influx of cheap imported goods, especially from China, this method is expected to create a more balanced market for local producers and importers.

 

Government spokesperson, Chai Wacharonke, announced that this new rule will be in effect 15 days from its publication in the Royal Gazette, until December 31. The government will then assess the impact of this policy before deciding on whether it should be extended.

 

Currently, the VAT is only collected on imported goods valued at over 1,500 baht. This has been the case since 2018. Instituting this new rule is a part of the government's larger effort to make the marketplace fair for local businesses.

 

Chai said that local businesses, especially online sellers, have suffered due to the inflow of cheap products. As a result, their earnings have decreased significantly. The government is considering changing the Revenue Code to provide a long-term solution to this issue.

 

Paul Srivorakul, the Chief Executive of e-commerce platform aCommerce, stated that implementing VAT ensures all goods are taxed uniformly, no matter where they are from. This makes the competition fairer for local products and domestic businesses, and could increase government revenue through both import duties and VAT.

 

However, Paul also warned that new duties on low-value goods could complicate customs procedures, slowing down the import process and affecting businesses that rely on imported products.

 

The e-commerce sector, especially those profiting from the sale of low-cost imported goods, could be impacted by this new VAT rule. Even so, Paul believes the benefits to local small and medium-sized enterprises (SMEs) and the Thai economy outweigh the effects on Chinese e-commerce platforms.

 

Several industries, including the steel sector, are feeling the effects of an overflow of Chinese goods in the market. Instead of importing Chinese steel to sell in Thailand, Chinese entrepreneurs are now setting up their own steel-making factories in Thailand.

 

Aat Pisanwanich, an independent analyst on international trade, warns that unless more measures are put in place to support Thai entrepreneurs, they may disappear altogether within the next five years.

 

File photo for reference only

 

-- 2024-06-05

 

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[ikke1959]

I am wonering how to pay tax at 5 thb. They don't have the coins for it. Nor even it will cost more of papers stamps and officials than the revenue

[Metapod]

worldwide tax, vat on all imports, carbon taxes.

 

holy <deleted>, Thailand is going to turn into a <deleted> hellhole.

[BarstoolChang]

Such a greedy government, creating all types of new draconian tax laws with the sole purpose of generating enough revenue to fulfil election promises that will harm the country more than help it.

 

Bring back prayuth.

[hotchilli]

13 hours ago, snoop1130 said:

Aimed at controlling an influx of cheap imported goods, especially from China, this method is expected to create a more balanced market for local producers and importers.

Local importers already pay taxes on what they import and sell on for profit, they affect the local producers as competition.

This tax only affects private individuals buying singular cheap items from the likes of Lazada or Shopee 

an item under the 1,500 baht mark.

[Pouatchee]

puke thai's legacy will be one of taxes. tax this tax that... wonder why taksin name isnt spelled taxsin

[OneMoreFarang]

Who will collect the taxes?

Who will check the value of whatever arrives here?

 

This is one of those stupid ideas which is impossible to implement.

How many people will be hired to check the parcels, check the value, write the bills, and collect the money? And how much will this administration cost? Does anybody really have to think for more than a minute to realize that is just a stupid idea?

[TheFishman1]

Government wants to grab money which way amazing Thailand TIT

[mark5335]

46 minutes ago, hotchilli said:

Local importers already pay taxes on what they import and sell on for profit, they affect the local producers as competition.

This tax only affects private individuals buying singular cheap items from the likes of Lazada or Shopee 

an item under the 1,500 baht mark.

It will likely also affect other items such as personal iHerb health supplements for which import duty is already paid (if >THB1,500 orders), in that apart from the import duty, an extra 7% VAT will now be required to be paid.

[Peterphuket]

4 hours ago, BarstoolChang said:

Such a greedy government, creating all types of new draconian tax laws with the sole purpose of generating enough revenue to fulfil election promises that will harm the country more than help it.

 

Bring back prayuth.

Yes, and if you pay close attention, it seems to apply mainly to foreigners.
What do you think, do they like us, or just our money.

[Thingamabob]

4 hours ago, BarstoolChang said:

Such a greedy government, creating all types of new draconian tax laws with the sole purpose of generating enough revenue to fulfil election promises that will harm the country more than help it.

 

Bring back prayuth.

...and ensure the escapee from Dubai never again has any say in Thai politics, whether formal or informal.

[lordgrinz]

8 hours ago, Metapod said:

worldwide tax, vat on all imports, carbon taxes.

 

holy <deleted>, Thailand is going to turn into a <deleted> hellhole.

 

The "Hub" of taxes! 

[bob smith]

I've just farted.

 

how much tax do I owe?

 

bob.

[tubber]

32 minutes ago, bob smith said:

I've just farted.

 

how much tax do I owe?

 

bob.

Depends if you followed through or not?

[john donson]

they forget it is the small shops, importing cheap good, reselling them, that will take the beating, well, they just increase the price for the customer

 

did mister teflon pay all his back taxes on the billions of baht of tax he did not wanted to pay and hence was ready to do a runner 

[daveAustin]

6 hours ago, BarstoolChang said:

Such a greedy government, creating all types of new draconian tax laws with the sole purpose of generating enough revenue to fulfil election promises that will harm the country more than help it.

 

Bring back prayuth.

It’s got that greasy prik from Dubai written all over it. 

[kingstonkid]

12 hours ago, ikke1959 said:

I am wonering how to pay tax at 5 thb. They don't have the coins for it. Nor even it will cost more of papers stamps and officials than the revenue

Relax, there are so many things that have been approved by the cabinet to go to the house that they will never get it actioned.  Also, the big money people have not weighed in yet on this and how it will affect their wallets.

 

Consider that they have

 

Cannabis laws

10k wallet

wage increase

charter amdt

rice pledges

debt solutions

Casino

VAT

possibly new Prime Minister

pardons for political prisoners

Senate,

 

With the few numbers of days, they sit, I would be surprised if anything gets passed.

 

 

LOL it will be fun to see what happens in the 

 

 

[digger70]

Cabinet Approves VAT on All Imports Exceeding 1 Baht

 

Here we go . Thailand the Hub for Taxes .

Wait there are more taxes to come soon.

[Dogmatix]

9 hours ago, hotchilli said:

Local importers already pay taxes on what they import and sell on for profit, they affect the local producers as competition.

This tax only affects private individuals buying singular cheap items from the likes of Lazada or Shopee 

an item under the 1,500 baht mark.

 

This is not the case.  Thai shopfronts on Shopee and Lazada have been drop shipping from China direct to Thai customers for a long time.  I can't say if these shopfronts are owned by Thais or Chinese but they save the cost keeping stock and don't have to pay Thai import duty and VAT, or didn't.

 

The whole premise is nonsense.  They want to benefit Thai Chinese middle to import the low end products, pay import duty and VAT on them, finance the cost of stocking and unsold products and mark up 30% over the landed cost to sell to naive Thai consumers.  But it will still be cheaper for the Thai consumers to buy from China, either through Thai shopfronts or Aliexpress and just pay 7% VAT instead a Thai Chinese importer's mark-up. Also everything will be backed up hopelessly at the post office and customs, if they have to open every single package and charge 3.5 baht on a 50 baht item. The cost of the collecting small amounts of VAT will greatly exceed the tax collected. 

 

From something else I read the VAT is only thin end of the wedge.  They are not charging import duty yet because Thai import duties are at different rates and that would slow things up even more but they are considering a uniform import duty rate for small packages.  If they make that 10%, they would be adding 117.7% to each package as the VAT is applied to the landed cost including import duty. . They can also add in an imputed postage cost to the landed cost.

[hotchilli]

44 minutes ago, digger70 said:

Cabinet Approves VAT on All Imports Exceeding 1 Baht

 

Here we go . Thailand the Hub for Taxes .

Wait there are more taxes to come soon.

They'd tax fresh air if they had any.

[digger70]

16 minutes ago, hotchilli said:

They'd tax fresh air if they had any.

No problem here than hey. 

 

[John Drake]

16 hours ago, BarstoolChang said:

Such a greedy government, creating all types of new draconian tax laws with the sole purpose of generating enough revenue to fulfil election promises that will harm the country more than help it.

 

Bring back prayuth.

 

Glad to hear more people say it. Prayuth was better!

[still kicking]

12 hours ago, bob smith said:

I've just farted.

 

how much tax do I owe?

 

bob.

It depends if it smells or not.

[bob smith]

27 minutes ago, still kicking said:

It depends if it smells or not.

It bloody stinks!! 

 

Bob. 

[AreYouGerman]

10 hours ago, kingstonkid said:

 

 

Cannabis laws

10k wallet

wage increase

charter amdt

rice pledges

debt solutions

Casino

VAT

possibly new Prime Minister

pardons for political prisonersSenate,

 

 

 

No to forget:

 

- Panama canal, I mean Thailand canal

- High speed railway from China

- A lot of Visa changes

 

It's nice they actually do stuff while in Democracies basically nothing happens.

[still kicking]

8 minutes ago, bob smith said:

It bloody stinks!! 

 

Bob. 

No Tax 

[Mr Meeseeks]

14 hours ago, Peterphuket said:

Yes, and if you pay close attention, it seems to apply mainly to foreigners.
What do you think, do they like us, or just our money.

 

Thaksin doesn't like us, that much has been very obvious since he first became PM in 2001.

[tomazbodner]

On 6/5/2024 at 5:00 PM, snoop1130 said:

Currently, the VAT is only collected on imported goods valued at over 1,500 baht. This has been the case since 2018. Instituting this new rule is a part of the government's larger effort to make the marketplace fair for local businesses.

It is not. It is to fill up empty government coffers.

[kingstonkid]

17 hours ago, AreYouGerman said:

 

No to forget:

 

- Panama canal, I mean Thailand canal

- High speed railway from China

- A lot of Visa changes

 

It's nice they actually do stuff while in Democracies basically nothing happens.

The issue is that they talk about doing this or doing that promise this or promise that but nothing gets done. The coalition has said they are going to do a lot but so far nothing has been made law or enacted.

 

 

[Lancelot01]

On 6/5/2024 at 7:40 PM, Metapod said:

worldwide tax, vat on all imports, carbon taxes.

 

holy <deleted>, Thailand is going to turn into a <deleted> hellhole.

Or a 'hub' of taxation.