Tax on online transactions could hurt shoppers
The move to tax any online transaction that takes place in Thailand regardless of the e-commerce operator’s location will make a level playing field tilted, not level.
If I buy, say, from Central Department store, why should I pay more for buying online versus at a brick-and-mortar store? If anything, online sales should be cheaper, because Central won’t need a prime location venue, sales persons, etc. Having the online tax would prompt me to buy in person, adding to travel expenses and traffic jams.
Perhaps Revenue Department Director-General Prasong Poontaneat’s real motive is to shield brick-and-mortar retailers from online retailers, and locals from offshore retailers – at the cost of consumers like you and me, dear reader. That’s hardly laudable, sir. Encouraging competition between different channels of distribution makes merchants more efficient and effective, saving the consumer’s hard-earned money, and that’s whose interests you should place first and foremost. For example, no government taxes taxi firms so that buses can compete with taxis, or taxes fares of foreign airlines so local ones benefit.
Instead of seeking to suppress innovation that’ll help bring Thailand 4.0 about, the government should help brick-and-mortar retailers adapt to the changes, for example by subsidising retraining for laid-off staff or helping retailers find new market niches.
Burin Kantabutra
