PM Srettha orders Temu to comply with Thai tax laws

[webfact]

Prime Minister Srettha Thavisin directed the Revenue Department and the Ministry of Digital Economy and Society (DES) to ensure the new Chinese online retailer Temu adheres to Thai regulations and meets tax obligations. The directive aims to address concerns from local industries about the potential influx of inexpensive Chinese products affecting Thai manufacturers.

 

The introduction of Temu, a Chinese e-commerce platform, raised alarms due to its strategy of luring customers with discounts of up to 90% on various items. Local small and medium-sized enterprises (SMEs) fear this could severely impact their businesses.

 

According to the Thai premier, all companies operating in Thailand must comply with tax laws, and it is the responsibility of state agencies to enforce this compliance. The 62 year old Thai prime minister emphasised the critical nature of this issue, highlighting the need for the government to be proactive in safeguarding local SMEs.

“The government must ensure every business in Thailand meets its tax obligations.”

Srettha added that discussions are ongoing regarding tighter import regulations. These measures may include imposing a value-added tax on imported goods priced below 1,500 baht (US$40), reported Bangkok Post.

 

Pawoot Pongvitayapanu, honorary president of the Thai E-commerce Association, echoed these concerns, urging the government to strengthen actions against illegal cross-border goods and enforce stricter import standards. He stressed that such measures are essential to maintain fairness for Thai SMEs.

 

In related news, the Thai e-commerce landscape is about to face a major upheaval, warns Pawoot Pongvitayapanu, CEO of Creden.co and PaySolutions. Speaking on Krungthep Turakij’s Deep Talk programme, Pawoot cautioned that the arrival of the Chinese online retail giant Temu could spell trouble for local retailers already battling fierce competition.

 

Pawoot highlighted that while Thai consumers are already familiar with cheap Chinese goods via platforms like Shopee, Lazada, and TikTok Shop, Temu’s direct-to-consumer model presents a new level of disruption.

 

by Bright Choomanee
Picture courtesy of Thairath money

 

Source: The Thaiger 2024-08-05

 

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[hotchilli]

2 hours ago, webfact said:

The directive aims to address concerns from local industries about the potential influx of inexpensive Chinese products affecting Thai manufacturers.

One foot in the door, both feet in the door, doors wide open... The neighbours have moved in.

[JimHuaHin]

Do Thais and Thai businesses comply with Thai tax laws?

[nobodysfriend]

3 hours ago, webfact said:

the potential influx of inexpensive Chinese products

 

That is enough of a publicity already ...

Reading this ,Thais will want to check it out for the prices ...

 

[brianthainess]

4 hours ago, webfact said:

Pawoot cautioned that the arrival of the Chinese online retail giant Temu could spell trouble for local retailers already battling fierce competition.

What a joke Thailand retailers ? you mean shops that sell Chinese goods, because no one makes them in Thailand.

[brianthainess]

I suppose it would be asking to much for any reports or stories about this, to tell us just HOW MUCH TAX is wanted is it the 7% vat or something else ?................. 

[john donson]

27 minutes ago, brianthainess said:

I suppose it would be asking to much for any reports or stories about this, to tell us just HOW MUCH TAX is wanted is it the 7% vat or something else ?................. 

 

iherb adds not 7 but about 17%

 

 

[watchcat]

2 hours ago, nobodysfriend said:

That is enough of a publicity already ...

 

Yes it is