Thai Restaurants & Bars Urge 5% Tax Suspension amid Economic Woes

[webfact]

File photo courtesy of Wikipedia

 

In the heart of Thailand's vibrant restaurant and nightlife industry, a chorus of concerned voices is pleading with the government to suspend the burdensome 5% excise tax. This tax, they argue, is an impediment at a time when economic sluggishness already has them on shaky ground.

 

The appeal, delivered on Tuesday, seeks a temporary reprieve from the excise duty that venues operating past midnight—such as bars and restaurants—must shoulder. This initiative emerges from the united front of six key associations, including the Night Restaurant Business Trade Association and the Khao San Road Business Association, as articulated by spokesperson Yani Loeiwanitcharoen.

 

These businesses claim the weight of the tax is exaggerated when their net profits frequently linger beneath 10%. Once the tax trickles down to the consumers, it can stifle patronage, shading prospects with economic gloom. They point out that alcoholic goods already contend with identical taxes, not to mention the layered burden from income tax and value-added tax (VAT).

 

The sector representatives describe a landscape where operating costs are climbing as revenues dwindle, leaving many teetering on the edge of closure. The reality, as they paint it, sees more establishments precariously positioning for shutdowns if relief eludes them.

 

 

 

Economic symptoms troubling the broader Thai economy aren't lost here, as Sanga Ruangwattanakul of the Khao San Road Business Association highlights. He observes declines manifesting through notable company closures and widespread layoffs—a damper on consumer spending spiralling down to affect restaurants and nightspots. Such conditions have businesses scrambling to manage labour expenses and rent, with some even resorting to loans merely to sustain operations.

 

In advocating for the tax suspension, Mr. Sanga proposed it would dovetail effectively with government efforts to revive the economy and enhance Thailand's allure as a tourist destination. Stimulus measures could offer a lifeline, fostering a hospitable climate for both local businesses and international visitors bringing vital economic exchanges.

 

As these associations await governmental response, the scene underscores a critical moment: increasingly stark choices loom and potential ripple effects from inaction threaten broader socio-economic landscapes. The call for tax relief stands not just as an immediate economic question but as a tendency towards shaping Thailand's future market dynamics, reported Bangkok Post.

 

-- 2025-03-22

 

 

[flyingtlger]

[BrandonJT]

As if any of them pay even 10% of what they actually owe. 

[ozz1]

I thought that tourism spending was well up or was that just wishful thinking   and don't forget the cost of brown envelopes for the police

[khunPer]

Seems like they need to raise the prices a tiny bit, so they can afford the tax...