Nakhon Ratchasima, Cabinet approves cancellation of Duty Free on arrivals, hoping tourists will spend 3,460 million baht/year on domestic products.
Mrs. Ratklao Intawong Suwannakiri, Deputy Government Spokesperson, revealed that the Cabinet meeting acknowledged the approach to promoting Thailand as a tourism hub by having 3 private sector concessionaires set up 8 duty-free shops: Suvarnabhumi Airport, Don Mueang Airport, Phuket Airport, Krabi Airport, Chiang Mai Airport, U-Tapao Airport, Hat Yai Airport, Samui Airport, stop providing duty-free goods for inbound customers to allow tourists to purchase goods for use in the country by paying tax after the total sales in the past period were 3,021 million baht.
The three private sectors have written to the Ministry of Finance, agreeing to end inbound duty-free in accordance with government policy until the policy is changed. Meanwhile, the National Economic and Social Development Board (NESDB) has proposed to inform the Cabinet of information after the ongoing
cancellation of the measure in order to assess the effect of the suspension of tax benefits. Currently, travelers entering the country through international airports can purchase tax-exempt goods for personal use or professional purposes, with a combined price not exceeding 20,000 baht.
Cigarettes not exceeding 200 sticks, or cigars or tobacco, not exceeding 250 grams each. Cigarettes must not exceed 200 sticks or 1 carton, and alcohol not exceeding 1 liter purchased within the inbound Duty Free shop. It is believed that this will reduce domestic consumption and purchases. The Ministry of Finance has therefore proposed the abolition of inbound Duty Free shops in order to promote domestic consumption and use of products. If sales are stopped for 1 year, it is expected that average spending per tourist per trip will increase by 570 baht, creating new cash flow of 3,460 million baht per year, causing GDP to expand by 0.012 percent per year.
Source: Thai News Agency