Connect with us


Hotels move to block provincial tax

Legacy Phuket Gazette



PHUKET: The Phuket Tourism Association (PTA) and the island’s Provincial Administration Organization (OrBorJor) appeared today to be on a collision course over a proposed new tax on hotel rooms. According to the Provincial Administration Organization Act of 1997, any OrBorJor may collect a tax equivalent to as much as 5% of room revenue from all forms of accommodation in its province. The PTA, however, argues that the Act contradicts the Thai Constitution, and that the Phuket OrBorJor therefore has no right to collect the hotel tax, an argument it put to the Provincial Governor, Charnchai Soontharamut, at his office this morning. A similar fight between the Koh Pa-ngan Municipality and the Surat Thani OrBorJor is already before the Constitutional Court, which is being asked to rule whether the OrBorJor Act clashes with the Constitution. “We’ve come to meet the Governor today because we want to delay the tax collecting process [during the hearing in the Constitutional Court],” explained Sombat Atiset, managing director of the Kata Thani Hotel & Beach Resort and the newly elected president of the PTA. Before 1997, the OrBorJor had authority only in areas outside the Municipality. That area shrank further in 1996, when the Tambon Administration Councils (OrBorTor) were set up. When the OrBorJor Act was passed the following year, however, it gave the OrBorJor authority over the whole province. This, the opponents of the hotel tax argue, is where the problem lies, because the Constitution states that there shall be no overlapping of authority between local government bodies. The OrBorJor Act should therefore be rescinded, the opponents argue, which would leave the hotel tax dead in the water. “I have to discuss the issue with the Governor, members of the OrBorJor, the PTA, and the Thai Hotel Association, Southern Chapter,” said Dr Prasit Koysiripong, president of the OrBorJor. “Nevertheless,” he added, “we will try to start collecting the hotel tax by October 1.” Asked about the tax rate, Dr Prasit said that it “has to satisfy every party”. Until recently, there were indications that the tax rate for Phuket would be set between 0.5% and 0.8%, a level that the PTA appeared ready to accept. Sources told the Gazette that the matter was discussed at a recent meeting of the Federation of OrBorJor in Southern Thailand. Dr Prasit, as president of the OrBorJor in the region’s leading tourism center, came under pressure to set the tax rate at a much higher 2%. The OrBorJor is already levying tax on fuel and tobacco. Vendors of these two commodities have been able to pass the additional cost on to consumers immediately. But this is not the case with many of the hotels, which have already pre-sold blocks of rooms for the coming high season to tour wholesalers at contracted prices, and will therefore not be able to pass the tax on to their guests.


Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram


Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Phuket2 hours ago

Phuket man finds 30 million baht surprise on beach: “whale poop”

Malaysia3 hours ago

Transgender who fled to Thailand faces extradition to Malaysia

Coronavirus (Covid-19)4 hours ago

Saturday Covid-19 Update: 11,975 infections, 127 deaths

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Thailand20 hours ago

Thailand News Today | Nov 1 reopening proposed; arrest for “sexy” officer cosplay | September 24

Coronavirus (Covid-19)21 hours ago

Covid-19 UPDATE: Provincial totals, vaccinations and more

Coronavirus (Covid-19)23 hours ago

Contrary to Anutin, US says delivery of vaccines awaits Thailand

Join the conversation on the Thaiger Talk forums today!
Thailand24 hours ago

Sunsets, ‘Farangs’ and Boring Charisma | Thaiger Bites | Ep. 25

Thailand24 hours ago

CCSA approves reopening delay, state of emergency extension

Thailand1 day ago

Video of feet on bread appears to be from India, not Thailand

Thailand1 day ago

Thailand Top Stories | Thailand’s security council approves Emergency Decree extension | Sep 24

Coronavirus (Covid-19)1 day ago

Phuket Covid-19: 3 new deaths, 322 released from medical care

Malaysia1 day ago

Malaysia considers further re-opening to domestic tourism

Thailand1 day ago

Thailand Re-opening, Costs and challenges | Good Morning Thailand | Ep. 96

Weather1 day ago

Weather warning issued as tropical storm Dianmu approaches

Coronavirus (Covid-19)1 day ago

Education ministry to accelerate vaccination of over 200,000 teachers

Tourism3 days ago

Travel data to Thailand for 106 million people unprotected online

Economy5 days ago

Cuts to import duty on alcohol, cigars, part of plan to entice wealthy foreigners

Crime4 days ago

OnlyFans content creators arrested by Thai police on pornography charges

Thailand4 days ago

Party at luxury villa in Phuket raided, homeowner allegedly assaults police officer

Coronavirus Vaccines5 days ago

Doctors say cardiac arrest caused death of man given AstraZeneca booster shot

Tourism7 days ago

Local businesses say they aren’t profiting from Phuket Sandbox

Coronavirus (Covid-19)6 days ago

Covid-19: Detailed info on vaccinations, hospitalisations, and provinces

Thailand5 days ago

Around 20 people arrested at Koh Samui restaurant for drinking alcohol, gambling, playing pool

Thailand4 days ago

Bangkok re-opening Criteria, Thai Airways keeps Struggling | Good Morning Thailand | Episode 93

Bangkok4 days ago

Governor says Bangkok will only re-open when safe to do so

Phuket2 days ago

Police suddenly began raiding Patong bars selling alcohol

Crime3 days ago

Ex-cop “Joe Ferrari,” other officers charged with violating discipline policy over suspect’s death

Thailand5 days ago

Morning Top Stories | No approved October re-opening, Phuket easing restrictions | September 20

Phuket6 days ago

Phuket domestic travel rules need streamlining, officials discuss

Thailand4 days ago

Government warns that posting pornographic material is illegal following OnlyFans creator being questioned by police

Thailand2 weeks ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand7 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism7 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket7 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism7 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand7 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism7 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand8 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand8 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand8 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand8 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand8 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand8 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand9 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand9 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11