The Ministry of Finance is set to propose an amendment to the Value Added Tax (VAT) law, maintaining the 7% rate, to the Cabinet next week.
This amendment aims to create fairness for Thai SMEs trading goods. Deputy Minister of Finance Julapun Amornvivat explained that the amendment specifically targets online imported goods valued at less than 1,500 baht per item.
The move also aims to prevent foreign dumping and lead to a more equitable market for both imported and locally produced goods. The deputy minister acknowledged that small items ordered online and imported from abroad should be taxed equally to those produced and sold domestically but have been exempted in the past.
He further noted that while there are international agreements on customs and VAT exemptions, the changing geopolitical and economic landscape, along with the rise of e-commerce, has prompted many countries to implement VAT measures on various products.
This amendment is expected to level the playing field for all market participants, both domestic and international. (NNT)
