Wednesday, May 29, 2019

Thailand plans to impose tourism tax on foreign tourists

Report by : Gan Yung Chyan
                  / KUCINTA SETIA




According to the Bangkok Post, Thailand plans to impose tourism tax on foreign tourists. The tax will be used to repair and improve the construction of local attractions. The Ministry of Tourism and Sports said that the Ministry is studying the tourism tax scheme and will find the most secure taxation method to reduce the impact on the country's tourism industry.

The Bangkok Post reported that Thailand’s National Tourism Policy Act was enacted on 15 May 2019, authorizing the Ministry of Tourism and Sports to formulate a strategic plan for tourism industry development and to clarify tourism industry standards. The ministry said that the taxation plan is expected to be completed within six months, and the formulation process will fully seek the opinions of all parties concerned. On the one hand, the taxation plan must clarify the amount of taxation and how to collect it. On the other hand, the plan must clarify what the tax is used for.

The Thai media “The Thaiger” speculated that each person would be charged 100 baht ( S$4.34). According to the information disclosed so far, the most important use of tax collection is to repair tourist attractions around Thailand. Part of the tax will be used to build and improve the infrastructure needed to receive tourists, such as the construction of a cruise port to welcome foreign tourists who come by sea from the cruise, especially to attract tourists from the sea to the southern part of Thailand area. In addition, some taxes will be used to cover the insurance costs of foreign tourists.

Tourism is an important source of income for Thailand. Last year, Thailand received more than 38 million overseas visitors and earned more than 2 trillion Baht. This year Thailand is expected to receive 41 million overseas visitors. Prior to this, some Asian tourist destination countries have levied tourist taxes. At the beginning of this year, Japan began to impose a departure tax of 1,000 Yen (S$12.60) per person. Malaysia has recently levied this tax on tourists, with ASEAN tourists paying 5 US Dollars (S$6.90) per person and visitors outside ASEAN paying 10 US Dollars (S$13.80) per person.

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