Customs cuts revenue by 8 billion baht, slashes import duties on 10,000 US items
The Customs Department is amending laws to reduce import duties on 10,000 items from the US, with implementation expected by the end of the year. The move is projected to result in a revenue loss of 8 billion baht.
- Thailand's Customs Department is cutting import duties on over 10,000 items from the United States, with the new policy expected to be implemented by 2025.
- This tax reduction is projected to cause an 8 billion baht loss in government revenue, with the impact starting in the 2026 fiscal year.
- The 8 billion baht revenue loss represents nearly 50% of the 20 billion baht currently collected annually in import duties from the US.
Yutana Phoolpipat, Deputy Director-General of the Customs Department, revealed that the department is currently amending regulations to move forward with reducing import duties on over 10,000 items from the United States, in line with the US tax policy agreement. This is expected to take effect by 2025.
It is estimated that in the 2026 fiscal year, the government will lose 8 billion baht in revenue due to the tax reduction. Currently, the Customs Department collects an average of 20 billion baht annually in import duties from the US.
“The import tax reduction for the US will result in a loss of nearly 50% of the annual import duty revenue from the US, which averages 20 billion baht,” Yutana said.
Regarding the use of local content in production, it currently stands at 40%, but the US is expected to increase this requirement to 50%. However, the department is confident that businesses will be able to adapt.
Efforts have already been made to coordinate with producers to prepare for the increased local content share, which will ultimately benefit both manufacturers and the national economy in the long term.
Regarding the tightening of checks on transhipment and transit goods, the Customs Department has partnered with the Department of Foreign Trade to monitor more than 80 high-risk items.
The Ministry of Commerce will issue certificates of origin for manufacturers, while Customs will expedite random checks on both imports and exports, as well as goods classified as Made in Thailand.
For the 2025 fiscal year, the department expects to meet its revised revenue target of 112 billion baht, which has been adjusted due to the overall economic situation and the importation of electric vehicles, as part of the government’s policy. This has resulted in a loss of revenue collection.
As for the 2026 fiscal year, the department has not revised its revenue collection target yet, but will continue to monitor the impact of the US tax policy.
