Fiscal Policy Office weighs delay to Thai outbound travel tax

Thailand’s Fiscal Policy Office said in a Bangkok Post article published Oct. 21 that a proposed outbound travel tax may be delayed if economic conditions are unsuitable, with a public hearing closing Oct. 29.

The proposal matters for travellers and businesses because officials linked it to Thailand’s medium-term fiscal framework, a budget-planning structure, while saying no decision on implementation has been made.

FPO director-general Vinit Visessuvanapoom said the Revenue Department is seeking views from interested parties and the public. Those comments and recommendations will be reviewed in the next stage to determine whether the measure is appropriate, he said.

“When deciding which activities should be taxed, the government must take into account the economic situation and the cost-effectiveness of the measure,” Vinit said, according to the Bangkok Post.

Vinit said the proposed levy is being considered to improve revenue collection efficiency, strengthen fiscal stability, cover rising government spending obligations and reduce long-term revenue constraints.

He also said the government must weigh more than the prospect of higher state revenue. The assessment should include effects on the public, businesses and related economic activity, as well as collection costs and any adverse impact, he said.

The government can revise or postpone the proposal if the assessment shows conditions are unsuitable, Vinit said. “The direction of this proposal will depend on the outcome of the public consultation and a comprehensive assessment of all relevant factors before any clear conclusion is reached.”