Thai finance ministry considers beverage tax restructure to boost tourism
A proposed restructuring of the beverage tax framework is under consideration by the Finance Ministry, as revealed by the permanent finance secretary, Lavaron Sangsnit. The restructure aims to bolster tourism and domestic spending.
This Friday, Lavaron plans to engage in a discussion with officials from the Customs Department and the Excise Department. The proposed measures align with Thai governmental policies aimed at boosting consumption and tourism.
The first measure proposed focuses on increasing domestic and tourist spending, achieved by the abolition of duty-free shops in the nation’s airport arrival areas. The objective is to encourage tourists to spend more during their stay in Thailand.
Measure two considers a reduction in beverage tax, a step taken in the hope of increasing domestic spending, reported Bangkok Post.
The third measure proposes tax incentives to promote products that encapsulate Thailand’s soft power, a move suggested by various industry representatives to the ministry.
The proposed fourth measure looks at the potential relaxation of opening hours for nightlife establishments located in popular tourist areas, as stated by Lavaron.
The fifth measure involves the Foreign Affairs Ministry, which has been tasked with examining the feasibility of extending the visa-free policy to include visitors from a wider range of countries throughout the globe.
These five measures received preliminary approval from the cabinet on Tuesday, with the goal of reinforcing Thailand’s reputation as a top tourism and shopping destination. The ultimate aim is to boost income and create jobs for entrepreneurs and businesses associated with the tourism sector, such as restaurants, hotels, entertainment venues, and transportation service providers, as explained by Lavaron.
However, as these measures could potentially result in a loss of tax revenue while simultaneously increasing domestic spending within the tourism sector, an evaluation of potential losses and income is necessary before any final decisions can be made.
