The Customs Department is scheduled to commence the collection of value-added tax (VAT) for imported goods sent through postal services, regardless of the value of the goods, starting in May.
According to finance permanent secretary Lavaron Sangsnit, imported goods currently sent via postal services are exempt from import duties and VAT if the importers declare the cost, insurance and freight (CIF) value of each item as less than 1,500 baht apiece.
However, low-priced goods from China are flooding the market, creating an unfair advantage as domestic producers are subject to taxes.
To ensure fair trade practices, the Finance Ministry plans to collect VAT for imported goods sent via postal services irrespective of their value, while maintaining the exemption from import duties.
According to Mr Lavaron, the Customs Department will issue an announcement of this tax collection, which can be done more swiftly than amending the Revenue Code.
A source from the Finance Ministry who requested anonymity said the threshold for exempted goods must not include prohibited items.
Each country sets its own threshold based on economic conditions.
For Thailand, the threshold was previously 1,000 baht, but was adjusted in 2018 to 1,500 baht per item.
Every year, more than 30 million parcel imports enter Thailand, with more than half claiming to be items with a CIF value not exceeding 1,500 baht.
Online platforms selling goods from China import a large quantity of low-priced goods in container loads, each containing tens of thousands of items.
This poses a significant challenge and requires a considerable amount of time if each box needs to be opened to assess taxes, as proposed by the Finance Ministry.
Customs officials are considering appropriate methods for tax collection on low-priced goods.