Govt considers cutting tax on luxury products to boost tourism and spending
In a bid to boost the tourism industry and spending by foreign visitors, the government is looking at the possibility of cutting taxes on luxury and brand-name products, a news source from the Ministry of Finance revealed on Friday.
The source said the idea was discussed during a recent meeting of ministry executives and representatives from the Federation of Thai Industries, the Thai Chamber of Commerce, Board of Trade, and the Thai Retailers Association to find measures to boost tourism and related industries. The session was chaired by Deputy Finance Minister Julapun Amornvivat.
Phaophum Rojanasakul, secretary to the finance minister, reportedly said that the meeting was the first in a series to formulate measures to stimulate tourism and shopping, with focus on high-income foreign arrivals. He expected these measures to be implemented in time for the upcoming high season (November – March).
Phaophum added that the Finance Ministry had tasked the Customs and Excise departments to study tax measures that could help attract high-spending foreign tourists, notably by decreasing or exempting from the luxury products tax.
“With the 10,000-baht digital wallet scheme likely to be delayed, the Thai economy needs short-term stimulus until early next year, especially in the tourism sector,” he said.
The meeting discussed luxury products that could be eligible for the tax cuts, including bags, shoes, watches, fashion accessories and cosmetics. Products in this segment are currently taxed at 30%.
The ministry also has tasked the two tax departments to study the pros and cons of the tax-cut measures in all aspects, especially the impact on Thai importers and retailers, the source added.
