The Taxation Bureau is currently examining the viability of reinstating an exit tax for Thais traveling abroad.
Pinsai Suraswadi, the director-general of the department, mentioned that officials are studying methods employed in other countries, particularly those that are economically advanced, which also implement comparable taxation systems.
Since 2007, Thailand has levied a departure tax on all travelers, both domestic and international, which currently stands at 700 baht. This fee is integrated into the cost of international flight tickets. If approved, the new outbound travel tax would instead be charged separately.
In 1981, the nation introduced a tax for travelers heading overseas as a reaction to an economic downturn, with the aim of curbing capital flight. This charge was applicable to people departing via land, sea, or air transportation.
Nevertheless, the tax was progressively waived and eventually eliminated.
Mr Pinsai mentioned that throughout the time when the travel tax was enforced, even during periods of economic crisis, Thais kept traveling overseas.
Even though the tax brought in revenue, the high collection expenses made it ineffective, prompting its ultimate abolition, he explained.
Previously, travelers were required to buy coupons at specific counters prior to leaving the country, a process that entailed significant operational expenses.
The Revenue Department is currently contemplating alternate approaches like utilizing online payment platforms or via the mobile application of Krungthai Bank (KTB).
Mr. Pinsai stated that the department is currently examining the appropriateness of imposing this tax. Should it be enforced, they are also deliberating on which method would be most suitable for handling tax payments.
The payment method might require updating, which can be done either through an online platform or using the KTB app.
Besides imposing a tax on outgoing international trips, the department intends to incentivize people to bring back earnings from overseas investments by providing a tax break valid for two years. Following this initial period, standard taxation rules will be reinstated.
Mr. Pinsai stated that the specifics of this policy are still being finalized.
'Timing is off'
Chotechuang Soorangura, who serves as the vice president of the Thai Travel Agents Association, stated that imposing an exit tax on Thai travelers would certainly influence their travel sentiments, which in turn could negatively affect the entire tourism sector.
He stated that the tourism sector derives its power from robust movement of both incoming and outgoing travelers, facilitated through exchange programs among specific nations.
For example, airlines tend to favor operating routes that offer a mix of both international and domestic travelers.
Furthermore, Mr. Chotechuang pointed out that implementing a payment method for travelers separate from the cost of air tickets could be problematic, similar to what happened 44 years ago when this approach was attempted.
He mentioned that certain nations, like Japan, incorporate an outbound tax into the airline ticket price since this fee applies to every passenger irrespective of their national origin.
We recognize that the government aims to establish new income streams. However, rather than cutting down on other superfluous expenditures, their focus will primarily be on targeting individuals and small to medium-sized enterprises.
The present circumstances differ significantly from those 44 years ago, making it unjustifiable to impose taxes on travelers during this economic decline.
Provided by Syndigate Media Inc. ( Syndigate.info ).
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