(Editorial credit: Gumpanat/Shutterstock.com)
The Thai public has until May 17 to express their views on whether a proposed departure tax should be introduced. Under the proposal, 1.000 baht would be levied on every Thai citizen and foreign permanent foreign resident of Thailand departing by air, and 500 baht on those departing by land or sea.
The tax would be levied on the purchase of tickets for foreign travel. Those who do not pay will have to pay double the amount plus 1,5% monthly interest as punishment. The penalties could also include six months in prison or a maximum fine of 3.000 baht. Other countries that tax outbound travel include Australia, China, Japan and neighboring countries of Thailand such as Malaysia, Cambodia, the Philippines and Vietnam. In these countries, the departure tax is usually included in the price of travel expenses, such as tickets.
The Thai government has been quick to reassure people that the proposal, which stems from a four-decade-old executive order, will not necessarily be implemented. The Tax and Customs Administration is now gathering opinions on the proposed tax through its website. Members of the public and organizations are invited to share their views until May 17.
What is a departure tax?
A departure tax is actually a levy imposed on foreign travel. The aim is to limit overspending by the local population when they travel abroad. Proponents of the proposal say it would help protect Thailand's balance of payments — the money moving in and out of the country. The proposal stems from an executive decree from 1983, which, according to the tax authorities, allows a maximum departure tax of 5.000 baht.
However, under the plan submitted to the public, the levy is capped at a more realistic level of 500-1.000 baht. Exemptions would also be granted to certain groups, including monks and Muslims on pilgrimage, and the tax would be refunded within 180 days if travel plans are cancelled.
Loud protests
The Association of Thai Travel Agents (ATTA) has condemned the proposal, saying the departure tax would limit the public's freedom to travel and threaten the country's ties with other countries. “Who wants to do business with us? While trying to attract foreigners to Thailand, our government wants to introduce a tax that will discourage Thais from traveling abroad,” Secretary-General Adith Chairattananon said.
About 1,2 million Thais and foreign residents traveled abroad in 2019, prior to COVID, he said. That number of trips would generate just 1,2 billion baht in departure taxes, while damaging Thailand's image and discouraging locals from traveling abroad, broadening their horizons and learning more, he added.
“That 1,2 billion baht could be generated simply by cutting government agencies’ foreign travel budget,” Adith said.
Critics of the proposal have noted that they already pay various taxes on foreign travel, including airport taxes.
An Asia Plus Securities study found that a departure tax would influence locals' decision to travel abroad for a limited time. After that, they would continue with their plans as the tax would only be a small part of their travel budget. The locals spend an average of 30.000 baht on each trip abroad.
Responding to the public outcry, the tax authority said it was only fulfilling its duty under the emergency decree by organizing a public consultation and had no plans to introduce the tax.
Separate 'tourist tax' from June
In addition to the proposed departure tax, the cabinet has approved a separate tourist tax that will be levied on all foreign visitors from 1 June. Those arriving by air must pay 300 baht, while those arriving by land or sea must pay 150 baht. Similar tourist taxes are levied in more than 40 countries worldwide.
Source: Thai PBS World
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Known as Khun Peter (62), lives alternately in Apeldoorn and Pattaya. In a relationship with Kanchana for 14 years. Not yet retired, have my own company, something with insurance. Crazy about animals, especially dogs and music.
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Thailand: the land of the free man… but if a Thai wants to go abroad, he or she has to pay. That used to be the case (80s) and was then an example of how not to treat your own people.
And now people are thinking about reintroducing that horrific measure.
That 1000 baht is already collected when traveling out for us with a retirement extension, through the re-entry permit.
You can also choose not to take a re-entry… then of course it has different consequences
There you write some Ronny and because no one is waiting for those other consequences and the obligation has been imposed, everyone who concerns this will take the re-entry permit. You choose the least harmful of two evils. It's a nice idea, but it doesn't make sense in my opinion.
Just about anything that requires some effort or costs money will be considered nonsensical or harmful. If not this, it must be something else.
By the way, Permanent Residents also pay for a re-entry.
So the idea is to introduce a general departure tax in addition to the already existing "Airport Departure Tax" of 700 baht and the planned (but postponed) "tourist tax" on arrival of 300 baht. There would then be another 1000 baht extra on top. Of course for all those three taxes different conditions to make it extra fun.
How do they come up with it? To good Thai understanding, it may also be the umpteenth balloon which, as suddenly as it was released, is withdrawn just as quickly.
“Thai outbound travelers and foreign permanent residents in Thailand ……”
It is therefore not about Non-immigrants who stay here for a long time or tourists
https://www.bangkokpost.com/thailand/general/2564461/departure-tax-proposed
Moreover
"In response to the public outcry, the tax office said it was only fulfilling its duty under the emergency decree by organizing a public consultation and had no plans to introduce the tax."
That is not a balloon, but one cannot help but organize something like this. So you also have the choice to vote against it.
You can by the way at this link
https://www.rd.go.th/64115.html
At least you have to go to the website of the taxes I understand from this to vote
Don't have any problems with it, if the government wants to generate extra income and in this case the target group is its own population and not the tourist, then they pick from the right group. After all, millions of Thais travel abroad for a short holiday or work abroad where they do not pay income tax to the Thai government because they take the money back with them or remain under the radar of the tax authorities. Other ways are debatable, such as raising taxes, but this 1000 baht levy is a social solution because yes, for a holiday of a few days to Japan, for example, people are happy to pay 50.000 baht or more plus all additional costs. I consider a 1000 baht levy to be a luxury tax for the Thais and if it benefits a direct increase in old-age pensions, let the government know what they are using it for, then it would be all right. And no, 1000 is not much, the 7% VAT of today is much too low and that is why people are looking for other solutions to raise money.
I remember in the 90's you had to pay a departure tax at the airport.
You then had to take a ticket at a machine and then cost 300 and later 500 to 700 Baht.
You then had to hand that over to an airport employee who was only there to accept those tickets.
Many tourists did not know that they had to pay this upon departure and were shocked because they had usually spent their last Baht somewhere. Could they change again.
Later this was included in the ticket and I think it is still the case.
'Protecting the balance of payments'. That's a nice excuse that you rarely hear. There are more countries that do or did like the USSR who wanted to prevent people from leaving the workers' paradise…. The GDR did the same, but with a load of lead in your head, and North Korea has similar measures.
I don't mind if you pay what it costs to travel out of the country. Such an Immi official also costs money and the barrier needs to be painted every now and then…. There were reasons to ask for an amount. But this has something of milking the travel cow and well, a cow just keeps on giving so it's unlimited fun for the state rack.
On the other hand, we should not make a drama of it as Western people. The Thai who crosses the border locally to uncle and aunt on the other side has more difficulty with that lap baht. But he knows a secret way….
Let's see what the new political parties will do with it. A great opportunity to show goodwill.
We already pay departure tax because we have to buy a re-entry permit for 1000 baht. Cutting back on civil servants yields more. Let's do that then.
“Thai outbound travelers and foreign permanent residents in Thailand ……”
It is therefore not about Non-immigrants who stay here for a long time or Tourists
https://www.bangkokpost.com/thailand/general/2564461/departure-tax-proposed
That must be a typing error………hahaha
So it says “under surprice levy”… 🙂
There are also countries (including NL) that introduce various taxes under the guise of the environment (such as on energy or travel) and allow that money to flow directly into the pot of algae resources. So yes if you need money (or want to keep the population small) you just introduce extra tax under the guise of.
Obviously a lot of squabbling at the time of announcement, but on balance no one will travel less. The amount is such a pittance compared to the total travel costs. Exactly the same with all European environmental taxes on airline tickets – as long as it doesn't really hurt substantially, people just travel. It is a sign of a lack of ideas to improve the financial situation of the country (on paper).