The Thai E-commerce Association is urging the government to ensure fair competition between local online sellers and cross-border products through tax collection to safeguard the 150-billion-baht online retail market in Thailand.
"The departments of Customs and Revenue should properly implement tax collection for international sellers, particularly Chinese players selling via online channels," said Thanawat Malabuppha, newly named chief executive and president of the association.
The Customs Department waived a custom tax for international products priced lower that 1,5000 baht. This has put locals sellers at a loss as they have to pay VAT on similar items.
Foreign e-commerce operators also do not pay corporate income tax, as their businesses are registered outside of Thailand.
As in other Southeast Asian countries, Thailand's e-tail market is booming.
According to a study by Google and Temasek, there will be 59 million internet users in Thailand by 2020, increasing from 38 million users in 2015.
Thais spend, on average, 4.2 hours per day on mobile internet, the highest rate in the world, with shopping ranking among the top five online activities. The association forecasts that the number of users shopping online in Thailand will double to 20 million by 2022.
A 2017 survey by the Electronic Transactions Development Agency (ETDA) found that online retail from the top 100 enterprises, SMEs, wholesale/retail and online department stores in Thailand was worth 150 billion baht.
Of the total, 40% was from social commerce, 35% e-market places and the rest from e-tailers and brands.
"The market is growing 29% annually, higher than China's e-commerce market, whose growth is 20%," Mr Thanawat said.
Citing a McKinsey study covering 4,800 SMEs in 12 countries, he said firms that embrace e-commerce can manage double digit revenue growth. E-commerce also provides work opportunities in rural areas.
The association will team up with the Thai Tech Startup Association to share their views with the Revenue Department on practical tax collection.
"Thailand's e-commerce market is at risk of being dominated by international e-commerce players, so fair competition is key to survival," Mr Thanawat said.
He said the association is also empowering online sellers by establishing an e-commerce knowledge centre and facilitating business matching between local merchants and e-commerce providers.