Shopping centres oppose VAT refunds at 7-Eleven

Shopping centres oppose VAT refunds at 7-Eleven

Worawut Oonjai, left, president of the Thai Retailers Association, argues against the Revenue Department's choice of three convenience stores for tourists' VAT refunds over five big shopping malls, at a press conference in Bangkok on Wednesday. (Photo supplied)
Worawut Oonjai, left, president of the Thai Retailers Association, argues against the Revenue Department's choice of three convenience stores for tourists' VAT refunds over five big shopping malls, at a press conference in Bangkok on Wednesday. (Photo supplied)

The Thai Retailers Association will petition against the Revenue Department's selection of three 7-Eleven convenience stores as agencies where foreign tourists can get value-added tax refunds, instead of in downtown shopping centres.

President Worawut Oonjai on Wednesday voiced the retailers' objection to the department's selection of just one agent, Counter Service Co, for its six-month trial of VAT refunds for departing tourists through agencies.

He said the decision cost the operators of VAT Refund Centre (Thailand) Co the opportunity to support the government's intention to encourage foreign tourists' spending. The company had spent almost a year preparing to supply the service.

Both parties had surveyed five shopping centres earlier proposed as VAT refund locations in Bangkok, showing the department was aware of the potential of the five locations. Later, the department chose only one operator with three VAT refund outlets, all 7-Eleven shops, Mr Worawut said.

The five downtown locations were CentralWorld, Central Chidlom department store, The Emporium, Robinson Sukhumvit and Siam Paragon.

The three selected locations are 7-Eleven convenience stores on Phadung Dao Road in Yaowarat, near Lido Cinema in Siam Square and in Bangkok Night Bazaar on Rama IX Road. Counter Service Co and 7-Eleven stores are part of CP All Plc.

Mr Worawut said the five shopping centres had the largest portion of foreign shoppers. No other country had set up VAT refund outlets for tourists at small stores. They established VAT refund facilities at shopping centres.

"The five shopping locations match the purpose of the Revenue Department because they house the biggest number of shops registered for VAT refunds for tourists. They could help relieve congestion at airports. Small shops are not the  right solution," he said.

If VAT refund outlets were sited at the shopping centres, tourists would  be more likely to spend more on shopping, because of the greater convenience of  getting the tax refund, and that would benefit the economy, Mr Worawut said.

He believed these five outlets were better than just the three, as selected. The more outlets the better. 

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