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The Customs Department in Thailand is considering a significant increase in import duty rates on low-value goods. The Customs Department deems the current variable rates, averaging around 10%, insufficient to ensure fair competition with domestically produced goods. There are plans to increase the rate to up to 30% to establish a more equitable market.

With imported products largely avoiding corporate income tax, domestic businesses face unfair competition, according to Phantong Loykulnanta, director-general of the Customs Department. He noted that most low-value goods are purchased online, sending revenue overseas. Up to 200 million parcels of these goods are imported annually, with more than 95% ordered through online platforms.

The remaining parcels, around 1 million, are bought directly from overseas sellers and delivered via Thailand Post. To counteract this trend, the proposed changes include applying a single, uniform import duty rate. This measure aims to simplify tax administration and boost domestic businesses.

Phantong stated that although the department supports increasing duties to 30%, the current caretaker government cannot issue decrees to amend the customs tariff. The proposals will remain on hold until a new government is formed. An increase in duties would also streamline tax collection by reducing the complexity of assessing variable rates on diverse shipments.

Thailand recently introduced duties on items valued at less than 1,500 baht to support domestic competition. This move is projected to generate an extra 3 billion baht annually in customs revenue. Despite the recent collection of VAT on such goods since July 2024, coupled with a revenue increase of 2 billion baht, import duties have yet to be fully applied, reported the Bangkok Post.

Key Takeaways:

• Thailand considers raising import duty on low-value goods to 30%.

• Proposal aims to protect domestic businesses from unfair competition.

• Duty changes are pending new government formation.

Related story:
Thailand to Tax All Online Shopping Imports Starting 2026

  

Adapted by ASEAN Now from Bangkok Post 2026-01-12

 

 

Probably one of the best ideas these guys have ever had.

Probably one of the worst ideas these guys have ever had.

Stick it to the poor once more.

How about higher taxes on luxury junk?

Not sure how that will actually benefit Thai producers, as what does TH actually produce ? I think I can count on one hand, maybe a 2nd hand needed, products I bought that were produced in TH. Some of Sony's camera gear is produced in TH, but that's about it.

Almost everything I own, was produced in CN or KR. It will simply raise price across the board. Good for tax revenues, but not the consumer.

Donald swat this manipulating fly with 500% tariffs please🤔

26 minutes ago, redwood1 said:

Probably one of the worst ideas these guys have ever had.

Oh boy.

How does applying/raising taxes on these low value items help local businesses?

The same products may well be available in local shops, their business model being, buy it from China and live off of the markup. Even a 30% tax wouldn't make them more attractive.

All this will do is increase government revenue - or are they going to use the not insignificant funds as a 'social welfare project' for 'favoured' businesses?

Instead of looking where the tax money is going and if they can save on spendings, they are thinking that import duty will solve all problems... Indeed it will cost more. which increase the household debts, as a lot things are not available in Thailand and must be imported even by the local sellers... But this is Thailand.. everything is being solved with tax and prisons.. easier than thinking about other solutions

9 minutes ago, NotEinstein said:

How does applying/raising taxes on these low value items help local businesses?

The same products may well be available in local shops, their business model being, buy it from China and live off of the markup. Even a 30% tax wouldn't make them more attractive.

Because this targets individual orders from Lazada and Shopee.

When a local business imports a container full of the same item, it isn't considered a low value import.

11 minutes ago, CallumWK said:

Because this targets individual orders from Lazada and Shopee.

When a local business imports a container full of the same item, it isn't considered a low value import.

I didn't imply that local businesses are subject to this tax, on the contrary, despite this tax, their markup without being subject to this tax is still more expensive. Of course, they may be subject to a different tax on large imports.

I think a couple of you missed this part ... "domestically produced goods", not imported items sold from local shops.

5 minutes ago, NotEinstein said:

I didn't imply that local businesses are subject to this tax, on the contrary, despite this tax, their markup without being subject to this tax is still more expensive. Of course, they may be subject to a different tax on large imports.

When a 30% tax is levied on an imported item, it brings the total price closer to what is available locally.

When I look at items on Shopee they are priced at almost the same price as what is available locally. It's the 20 - 25% discount voucher which makes them attractive.

Adding the 30% tax virtually nullifies the voucher.

If the price difference is smaller it makes local goods more attractive

15 minutes ago, CallumWK said:

When a 30% tax is levied on an imported item, it brings the total price closer to what is available locally.

When I look at items on Shopee they are priced at almost the same price as what is available locally. It's the 20 - 25% discount voucher which makes them attractive.

Adding the 30% tax virtually nullifies the voucher.

If the price difference is smaller it makes local goods more attractive

We buy a lot of items through Shopee - probably 30% from China, which can be significantly cheaper (50%+) than a Thai Shopee outlet, Nothing to do with discount vouchers, which equally apply to the Thai Shopee outlet's products. Actual Thai brick and mortar shops can't compete with Thai Shopee outlets, let alone Chinese ones.

Of course, this does not apply to Thai made products, which can be significantly cheaper from the source through Shopee compared to actual shops, for example, tea from Chiang Rai.

2 hours ago, NotEinstein said:

We buy a lot of items through Shopee - probably 30% from China, which can be significantly cheaper (50%+) than a Thai Shopee outlet, Nothing to do with discount vouchers, which equally apply to the Thai Shopee outlet's products. Actual Thai brick and mortar shops can't compete with Thai Shopee outlets, let alone Chinese ones.

Of course, this does not apply to Thai made products, which can be significantly cheaper from the source through Shopee compared to actual shops, for example, tea from Chiang Rai.

I avoid at all costs anything showing as shipped from "China", I'm glad Lazada allows me to filter them out.

On 1/12/2026 at 2:48 AM, Emdog said:

Stick it to the poor once more.

How about higher taxes on luxury junk?

Thailand has a two tier society, but only one tier sheds the tears. 🙂

Enough already with these new taxes. We're living in Thailand , not the fg EU !

Let's hope the next government is better.

I remember the time when import duty rates were were a percentage of the landed cost, different percentages for different product categories. So, are they going to change it now, low cost high rate, high cost low rate, regardless of product category?