Ministry aims to rejig beverage tax

Ministry aims to rejig beverage tax

One proposed measure reduces the beverage tax to increase domestic consumption.
One proposed measure reduces the beverage tax to increase domestic consumption.

The Finance Ministry plans to adjust the beverage tax structure to support tourism and domestic consumption, says permanent finance secretary Lavaron Sangsnit.

On Friday he plans to invite officials from the Customs Department and the Excise Department to discuss the measures, which are in line with the government's policy to increase consumption and tourism.

The first measure aims to encourage domestic spending among locals and foreign tourists by cancelling duty-free shops in airport arrival areas to encourage greater spending by visitors during their stays in Thailand.

The second measure deals with the proposed reduction of the beverage tax to increase domestic consumption.

The third measure concerns proposed tax measures to promote products that reflect Thailand's soft power, which many industries have proposed to the ministry for consideration.

The fourth measure deals with a proposal to relax opening hours at night entertainment venues in major tourist districts, said Mr Lavaron.

For the fifth measure, the Foreign Affairs Ministry was assigned by the cabinet to study the possibility of extending the visa-free policy to cover visitors from more countries, he said.

The cabinet on Tuesday agreed in principle to the five measures proposed by the Finance Ministry, aiming to bolster the country's status as a premier destination for tourism and shopping. The goal is to increase income and create jobs for entrepreneurs and tourism-related business such as restaurants, hotels, entertainment venues and transport service providers, said Mr Lavaron.

As the measures will likely lead to both a loss in tax revenue and higher domestic spending in the tourism industry, an estimate of losses and income is required before a final decision can be made, he said.

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