The Thai government will reduce import duties on luxury goods from 30 per cent to 5 per cent to create Thailand as a shopping paradise – one of several attempts to attract more than the 26 million tourists already projected to come to the country this year. 

Areepong Bhoocha-oom, permanent secretary for finance, said the new import tax structure should be concluded in a few months with the hope that Thailand will be more competitive with duty-free countries such as Singapore and Chinas Hong Kong and that the country’s gross domestic product GDP would consequently grow by 4 per cent.

Bangkok Shopping in Rama 9
The Thai government will reduce import duties on luxury goods from 30 per cent to 5 per cent

Admitting shrinking exports, he said the government would switch to stimulate the domestic economy with an emphasis on tourism which has been on a rising trend since early this year.

“We hope to attract 26.4 million tourists this year – an increase from 22.4 million people or by 18 per cent from last year,” said Mr Areepong. “The tourism and service sector represents 50.3 per cent of GDP and 44.5 per cent of total employment.”

The government aims to promote Thailand as a regional shopping paradise while the reduction of import tax on luxury goods could encourage tourists to stay longer during their visit to the country, he said. Mr Areepong said the lower import tax would also attract Thai people to shop for luxury goods in the country instead of having to buy the products abroad.

In supporting border trade and tourism, he said the government would allow Thais and foreigners to possess more cash from the original limitation at Bt500,000 per person.

The government has mapped out plans to boost domestic consumption through Bt880 billion state-initiated projects and speed up over Bt41 billion in state budget spending and Bt60 billion investment within this year, said Mr Areepong. He predicted that the US attack on Syria would have an impact on the prices of oil, gold and stocks for a short term. MCOT online news

via Thailand to become shopping paradise with lower tax on luxury goods | |

About the author

Leave a Reply

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

China-Laos Railway: Bringing Opportunities for ASEAN and the Asia Pacific

The new railway can transform Laos from a landlocked country that was the least industrialized in ASEAN into a land-linked hub that connects to the wider region. The southern part of the line will connect the Thai province of Nong Khai to the capital Bangkok.

Stable outlook for APAC sovereigns as growth rebounds and debt stabilizes

Economic growth rates in Asia-Pacific are broadly rebounding and debt burdens stabilizing, giving rise to a stable outlook for sovereign creditworthiness in 2022. Still, the pace of recovery differs vastly, and some economies will experience deep economic scarring, according to a new report by Moody’s Investors Service.

Thailand’s H1 Investment Applications rise 158% in combined value, BOI says

Japanese firms ranked first with 87 projects worth 42.8 billion baht, followed by investments from the U.S. with 18 projects worth 24.1 billion baht, and China with 63 projects worth 18.6 billion baht.