Business leaders suggest allowing Thai cross-border traders to access free zones to support cross-border trade and Asean expansion at a time of depressed export demand.
The Joint Standing Committee on Commerce, Industry and Banking is calling on the government to consider a measure to help drive the growth of cross-border trade, whose value has risen greatly in the past five years.
Thai Chamber of Commerce chairman Isara Vongkusolkit said Monday that cross-border trade would support the country's economic and export growth while waiting for the Western economies to recover.
Full-year cross-border trade is forecast at 1 trillion baht, up from last year's 900 billion baht, said Mr Isara.
The government lets Thai exporters reclaim value-added tax after they ship products overseas, but the process takes about 90 days. Hence, free zones have been set up for eligible exporters to declare tax payments and to import materials into Thailand with a VAT exemption instead of waiting to reclaim VAT.
But the free zones are limited to exporters eligible under Customs Department criteria, which include standardised production sites, quality control and accounting standards.
Cross-border traders that normally process their tax declaration through customs checkpoints in border provinces are not eligible to use free zones under the stringent criteria, as they are mostly small and medium-sized firms.
Mr Isara pitched the idea of allowing cross-border traders to process their tax declarations through free zones in order to lubricate their cash flow.
Food and consumer goods are the key products exported to regional markets. Local exporters and cross-border traders include big corporations as well as smaller firms, he said.
The joint committee also proposed speeding up enhancements at existing customs checkpoints.
Jane Namchaisiri, vice-chairman of the Federation of Thai Industries, said checkpoint improvements should focus on upgrades to data collection.
"We have a concept to encourage border trade and exports to the region, but it needs an in-depth study before it goes to the authorities," said Mr Jane.