Cabinet okays VAT change to curb cheap imports
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Cabinet okays VAT change to curb cheap imports

Measure will take effect until Dec 31, after which its impact will be reviewed

(Post File Photo)
(Post File Photo)

The cabinet has approved in principle a Ministry of Finance proposal to collect value-added tax (VAT) on all imported goods valued at over one baht in an effort to stop cheap imported goods, particularly from China, from flooding the domestic market.

According to government spokesman Chai Wacharonke, the new threshold will come into effect 15 days following the publication of the announcement in the Royal Gazette, after which it will be in effect until Dec 31.

The government will assess the impact of the policy before making decisions on whether to extend it, he added.

Under the current VAT regime, which has been in effect since 2018, only imported goods valued at over 1,500 baht are subject to VAT collection.

Mr Chai said the measure is part of the government’s effort to level the playing field between importers and local producers in the domestic market. The move followed complaints from local businesses, especially online sellers, who said the influx of cheap products online is hurting their incomes.

In the long run, the government plans to amend the Revenue Code to address these issues permanently, he added.

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