More importers are cashing in on tax privileges from free trade agreements, making up at least 80% of import value at the moment, an increase from 20% in the past, the Customs Department chief said.
The rising use of tax privileges from free trade agreements with Asean countries was attributed to importers' efforts to keep costs down to beef up competitiveness, director-general Rakhop Srisupha-at said.
Automotive-related operators have enjoyed the most tax privileges, he said.
The use of tax privileges has decreased tax revenue for customs, with collection the first two months of the fiscal year 14% lower than targeted. The government's fiscal year runs from Oct 1 to Sept 30.
The department's stringent rules for some items, including a recent ban on imports of completely knocked down cars, could also contribute to the lower tax revenue collection the past two months, he said.
Mr Rakhop said import volume has not declined significantly, but could do so in the near future as importers may slow their orders on concerns about government instability and the failure of the 2-trillion-baht infrastructure borrowing bill to materialise.
The government's hefty investment in infrastructure development, the bulk of which is in high-speed trains and railways, is expected to jump start the economy as domestic consumption runs out of steam.