Finance Ministry to Propose VAT Law Amendment to Cabinet
Bangkok, June 4 – The Ministry of Finance is preparing to propose an amendment to the Value Added Tax (VAT) law, maintaining the current 7% rate, to the Cabinet next week. This move aims to ensure fairness for Thai small and medium-sized enterprises (SMEs) trading goods.
Deputy Minister of Finance Julapun Amornvivat outlined that the amendment specifically targets online imported goods valued at less than 1,500 baht per item. The objective is to prevent foreign dumping and create a more equitable market for both imported and locally produced goods.
Julapun emphasized that small items ordered online and imported from abroad, which have previously been exempt from VAT, should be taxed similarly to domestically produced and sold items. He noted that while there are international agreements on customs and VAT exemptions, the evolving geopolitical and economic landscape, coupled with the rise of e-commerce, has prompted many countries to introduce VAT measures on various products.
The proposed amendment is expected to level the playing field for all market participants, ensuring fair competition between domestic and international goods.
Government officials and local business leaders have expressed support for the amendment, recognizing its potential to foster a more balanced and competitive market environment.