1000 baht departure tax proposed

[Gaybutton]

Proposed doesn't mean enacted. The way I see it, it's just another foolish proposal from someone who thinks he has a really bright idea. First they're worried that the 300 baht arrival tax may deter tourists, so they come up with this? To me it makes about as much sense as telling your boss, "I'm sorry I'm late, but I'll make up for it by leaving early."

Of course, nothing is made clear about what kind of departure would be taxed. People depart by both land and sea too. Is this going to add 1000 baht to the cost of a visa run?

And that's just why I think it stands a good chance of passing . . .
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Departure tax proposed

Thais and foreign residents would pay 1,000 baht to leave the country via air under surprise levy

by Narumon Kasemsuk

May 6, 2023

Thai outbound travellers and foreign permanent residents in Thailand have been asked for their opinion on a government departure tax of 1,000 baht in an attempt to prevent locals from spending excessively abroad, with the Revenue Department announcing online public hearings this week.

The department posted the public hearing questionnaire on its website, saying it wants to listen to public opinion about an emergency decree on a departure levy, based on a law passed in 1983, in order to assess its impact.

The hearings have been scheduled for May 3-17.

According to the questionnaire, Thai citizens and foreign permanent residents would be required to pay a departure tax of 1,000 baht for air travel and 500 baht for land and sea travel.

The information attached to the poll said the tax aimed to generate revenue for the government and prevent Thais from excessive overseas spending, with a focus on reducing the trade deficit.

Charoen Wangananont, president of the Thai Travel Agents Association (TTAA), said the questionnaire came as a surprise when it was posted earlier this week, even though the public hearing process meant it was supposed to be shared as widely as possible to assess the impact on local residents and tour operators.

"The principle and the levy rate make no sense at all, as Thailand has never had a problem related to a trade deficit in tourism, with inbound income making up 70% of the total, compared with 30% outbound expenditure. In addition, 1,000 baht is too expensive amid current economic conditions," said Mr Charoen.

He said the levy collection should not happen and is unrealistic. If the government wanted to propose such a tax, it should carefully assess the consequences because it could have a major effect on tourism, exceeding whatever revenue the state estimates it could earn, said Mr Charoen.

"We thought this was fake news the first time we saw the poll because it is not the right time to do such a move. If the government really thinks it needs to collect a departure tax, it should have done so before the pandemic, when the tourism industry was on an upward trend. The levy rate should also be more appropriate," he said.

Chotechuang Soorangura, vice-president of TTAA, said a development plan should be included with any departure tax so the people who pay it are aware of how the government will spend the revenue.

He said while some countries apply a departure tax, such as Japan, the price is only ¥1,000 per person, or around 250 baht.

"In addition to being a very expensive tax rate, there is a lack of transparency as the government could not clarify how it will use that money, which would help prevent corruption. Another concern is the 300-baht tourist tax expected to be charged to foreigners in the near future," said Mr Chotechuang.

He said if this levy is implemented, the tourism industry would be affected as a number of outbound tourists would refrain from travel, resulting in imbalanced flows of people, causing difficulties for airlines planning flights to Thailand.

https://www.bangkokpost.com/thailand/ge ... x-proposed

[Jun]

I don't think Thailand has any reason to worry about balance of trade.
That's been positive for years, except for a short negative period after tourism was stopped due to persisting with daft covid restrictions for too long.

Now they want a departure tax ? Which will discourage tourists, who make a net positive contribution to the balance of trade.

If they do want to do something about the balance of trade, how about looking at China ? In 2021, Thailand imported $69.6 bn worth of goods from China, but exported only $37.7bn. Thailand has signed a free trade agreement with China, despite it being fairly obvious that the Chinese policy is to discourage all imports. The most obvious case being covid vaccines, where better products could have been obtained from overseas manufacturers.

As for spending the money, we know most of it will go on dodgy construction contracts to build white elephants, such as hugely oversized railway stations, usually in the wrong place.

[Gaybutton]

As for spending the money, we know most of it will go on dodgy construction contracts

Or perhaps into certain select pockets . . .

Now they're saying it was just an opinion survey and this tax will not be imposed. I wonder what kinds of opinions they were expecting. If they ever want my opinion, all they need to do is ask for it. I'm not holding my breath.

The article says this opinion survey is "legally obliged".


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Departure tax just opinion survey, 'will not be imposed'

May 7, 2023

The controversy about a 1,000-baht departure tax on outbound Thais and foreign residents is only a legally obliged opinion survey and the tax will not be imposed, the Revenue Department said.

Winit Wisetsuwannaphum, deputy director-general of the department, said on Sunday that the department did not plan to impose the departure tax of 1,000 baht for outbound flights and 500 baht for exit by land or sea for Thais and foreign residents.

He referred to a 1983 executive decree concerning the departure tax.

Mr Winit said although a ministerial regulation has waived the departure tax since 1991, the constitution required the department to assess the suitability of the old executive decree.

Therefore, the Revenue Department conducted the opinion survey on the tax on its website www.rd.go.th from May 3 to 17, he said.

"There is not a plan to collect the departure tax," Mr Winit said.

By the end of next year the department would conduct opinion surveys on laws on inheritance tax and petroleum income tax (PT), he said.

PT is a direct tax, levied annually (for each accounting period of 12 months duration) on net profit of a “petroleum taxpayer” involved in the business of petroleum exploration and production. It is also levied on the disposal of profits outside of Thailand.

https://www.bangkokpost.com/business/25 ... be-imposed
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I'm still waiting for the underground public restrooms along Jomtien Beach. What happened to that?

[Jun]

Or perhaps into certain select pockets . . .

I'm still waiting for the underground public restrooms along Jomtien Beach. What happened to that?

I thought the construction contracts were a way of siphoning the money off into certain pockets.

There are plenty of examples of dodgy contracts in the Jomtien beach area.
Remember that last refresh with the new sign, within the last 5 years ? Well look how grubby the sign is now.

Or the ridiculous beach widening lower down Jomtien beach.
Meanwhile, across the bay in Prachuapkhirikhan, they have built a road over their beach and are in the middle of building a pointless wall over the beach to the north of the town.

Underground toilets for the beach could win the prize for the most stupid idea of the lot. These tend to be grubby even in developed countries. In Pattaya, they are guaranteed to flood.

Rather like all the underpasses for the railway upgrades in north east Thailand. Looking out of the train window, it's obvious these are below the level of the surrounding water and a good number were flooded even before the construction work was complete.

Considering they way they spend the money, the less tax the government raises, the better.

[Gaybutton]

Thai Government Launches Public Opinion Poll on Departure Tax

By Tanakorn Panyadee

7 May, 2023

On the website of the Thai Revenue Department, a public hearing questionnaire has been launched to gather public opinion on a government departure tax of 1,000 baht.

The questionnaire says the new levy will help prevent locals from spending too much aboard. The hearing will range from May 3rd to 17th, aiming to assess a possible impact of the tax.

According to the questionnaire, Thai citizens and foreign permanent residents would be required to pay a departure tax of 1,000 baht for air travel and 500 baht for land and sea travel. This aims to generate extra revenue for the government and prevent Thai people from spending excessively overseas, according to the poll. It also aims to reduce the country’s trade deficit.

The hearing came as a surprise to many tourism operators in Thailand.

Charoen Wangananont, president of the Thai Travel Agents Association (TTAA), said the levy collection and its principle are unrealistic and illogical because Thailand has never encountered any issues related to a trade deficit in the tourism industry, given that 70% of the total income is generated from inbound tourism, while only 30% of the expenses are related to outbound tourism.

He also said that 1,000 baht is too expensive amid current economic conditions and could have a major effect on tourism, potentially surpassing whatever revenue the government expects to generate.

“We thought this was fake news the first time we saw the poll because it is not the right time to do such a move. If the government really thinks it needs to collect a departure tax, it should have done so before the pandemic, when the tourism industry was on an upward trend. The levy rate should also be more appropriate,” Charoen said.

Chotechuang Soorangura, vice-president of TTAA, said the government should be transparent on how it will spend the revenue.

He also agreed that the levy rate is too expensive, for example, Japan also has a departure tax, but it is only ¥1,000 per person, or around 250 baht.

If the tax is ultimately implemented, Thailand’s tourism would be affected as the number of outbound tourists would contract, resulting in imbalanced flows of people and causing difficulties for airlines planning flights to Thailand.

https://tpnnational.com/2023/05/07/thai ... rture-tax/

[Jun]

According to the questionnaire, Thai citizens and foreign permanent residents would be required to pay a departure tax of 1,000 baht for air travel and 500 baht for land and sea travel. This aims to generate extra revenue for the government and prevent Thai people from spending excessively overseas, according to the poll.

They are losing the plot.

So we're going to get a 300 baht arrival tax, for tourists only.
Then a 1000 baht departure tax, for Thais and permanent residents.

Therefore, a lot of screening would be required at borders to determine which tax bracket people would be in.
If they are going to levy taxes, it would be far better to have a flat rate arrival tax, added onto flights.

As for Thais shopping abroad, well the shopping experience and prices for manufactured goods tend to be worse in Myanmar, Laos & Cambodia. Whilst food and beer might be cheaper, I really don't think many Thais are going to these countries for shopping expeditions. I think it's more common for people to head into Thailand for shopping.
So no need to apply the tax for land borders.
There can't be that many Thais going to Malaysia overland.

If they're worried about the trade deficit, how about focussing on things that will fix it ?
(i) Cancel any FTA with China
(ii) Ensure the local economy is competitive, with good education, reduced corruption, low taxes etc
(iii) Try to promote some productivity improvements. They could start with the public sector to set an example.
(iv) Promote tourism, as that has a positive impact on balance of trade. One simple measure would be longer visa free entitlements.

[Gaybutton]

They are losing the plot.

If there ever was one in the first place. I agree with every word you wrote. What you say makes sense - which is why I doubt any of what they end up doing will have even the most remote resemblance to your suggestions . . .

[Bangkokian]

Denied by the revenue department ---- so probably true.

[Jun]

Also, don't they have a general election soon ?

So traditionally that's a time for making unfunded spending promises, rather than leaking ideas about particularly stupid taxes.

[Gaybutton]

I'll have to let you folks figure out what is happening and where this proposal is going. It's too confusing and convoluted for me.
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Clarifying departure levy scuttlebutt

Explainer: The Revenue Department dismissed concerns about a new tax, saying a public hearing is a legal obligation

by: Wichit Chantanusornsiri and Narumon Kasemsuk

May 10, 2023

As the general election draws near, implementing collection of a new tax is an extremely sensitive issue and almost unheard of as a political tactic.

Given this backdrop, the Revenue Department sidestepped concerns last week that it is considering a new departure tax on outbound travellers, based on a 40-year-old "emergency decree".

The department confirmed it has no plans to collect a departure tax, with the public hearing it called via a questionnaire only a "process required by law" to evaluate regulations.

WHY IS THE DEPARTMENT HOLDING A HEARING ON THE TAX AT THIS TIME?

Some people were alarmed to hear about the public hearing on a new departure tax. The hearing is slated for May 3-17.

The decree was passed in 1983 in an effort to increase state revenue.

The law also aims to control capital outflows in order to help alleviate trade deficits and maintain the country's balance of payments, according to the department. Certain groups of people are exempted from this tax, comprising pilots, flight attendants, monks, novices and Hajj pilgrims.

According to the decree, the maximum levy is 5,000 baht, though the government authorised the Finance Ministry to determine an effective rate.

The ministry issued a ministerial regulation to impose a departure tax of 1,000 baht for air travel and 500 baht for land and sea travel.

The law was in effect for eight years before being shelved in 1991. The ministry issued new rules to waive the tax, citing improvements to the Thai economy that meant the levy should no longer be collected.

In the event there is a legal hearing on the matter, the Revenue Department said a public hearing is in line with the law governing law development and the evaluation of issued laws, passed in 2019.

As a result, state agencies are required to hold public hearings on crucial laws every five years.

According to department spokesman Vinit Visessuvanapoom, the hearing is to review the content of the departure tax law.

"The hearing is not in preparation to impose the tax," he said.

Mr Vinit said although the departure tax has been waived since July 1, 1991, the department is legally obliged to hold a public hearing on the law to ask for public opinions.

Next year the department plans to hold public hearings on the Petroleum Income Tax Act and the Inheritance Tax Act.

WHAT ARE THE CONCERNS AMONG TRAVELLERS AND TOURISM OPERATORS?

Some countries collect a departure tax, such as Japan, which introduced a rate of ¥1,000 per person (around 250 baht) included in airfare for all international travellers since January 2019.

The UK has an air passenger duty charged on airfare for outbound flights with different "band rates" depending on the destination. The UK's levy applies to local residents, but excludes inbound international travellers.

A number of local travellers raised concerns on social media about the public hearing on the departure tax, which they described as too expensive.

There is also confusion related to other travel taxes, notably the passenger service charge of 700 baht for international flights collected by the airport authority, while the planned tourism tax of 300 baht for overseas arrivals is scheduled to be collected later this year.

Charoen Wangananont, president of the Thai Travel Agents Association (TTAA), said if the government is publishing information for a public hearing, the questionnaire should be distributed as widely as possible to gauge public opinion, even if the department does not intend to implement a departure tax.

"In reality, we know it would be difficult to collect a departure tax of 1,000 baht now. But if the government wants to implement this tax in the future, people should have more information about it to weigh the benefits and disadvantages of this scheme," said Mr Charoen.

He said the government justification provided with the public hearing questionnaire on needing to balance the tourism trade deficit is irrational. Mr Charoen said Thailand has a tourism trade surplus and always has, with inbound income comprising 70% of the total, compared with 30% of outbound expenditure.

He was referring to the government statement that the departure tax would somehow deter outbound Thais and resident expats, who were "spending too much on overseas trips".

"In addition, 1,000 baht is too expensive amid current economic conditions," said Mr Charoen.

Chotechuang Soorangura, vice-president of TTAA, said a development plan should be included with any departure tax so the people who pay it are aware of how the government will spend the revenue.

He said while some countries apply a departure tax, such as Japan, the rate is considered reasonable, at around 250 baht.

https://www.bangkokpost.com/business/25 ... cuttlebutt