Thailand's Chamber of Commerce Backs 30% Import Tax on E-Commerce Goods

The Thai Chamber of Commerce has endorsed a government initiative to impose a maximum 30% import tax on goods sold through e-commerce platforms. This measure aims to create fairer competition for local small and medium enterprises (SMEs) and retail businesses, which have been struggling against a flood of cheaper imported products, particularly from China.

Poj Aramwatananont, Chairman of the Thai Chamber of Commerce, emphasized that the goal is not to block foreign products but to ensure that all market participants adhere to the same rules. He said their aim is to foster fair competition, ensuring that products entering the market meet certain standards while allowing Thai entrepreneurs the opportunity to enhance their capabilities and compete sustainably.

Currently, many Thai operators comply with regulations regarding taxes and product standards, while some imported goods may evade these requirements, creating an uneven playing field.

However, Poj cautioned that merely increasing taxes might not suffice. He urged the government to prioritize the enforcement of product safety and quality standards and to clarify the responsibilities of e-commerce platforms in monitoring sellers and their products. This includes better data sharing among relevant agencies to effectively prevent the entry of substandard goods and tax evasion.

“Their aim is to foster fair competition, ensuring that products entering the market meet certain standards while allowing Thai entrepreneurs the opportunity to enhance their capabilities and compete sustainably.”Poj Aramwatananont, Chairman, Thai Chamber of Commerce

In addition to tax reforms, the Chamber advocates for supportive measures to enhance the competitiveness of Thai SMEs. This includes reducing business costs, improving productivity, raising product standards, and promoting the adoption of technology and artificial intelligence (AI) to streamline operations. Furthermore, there is a push to improve access for SMEs to both domestic and international e-commerce markets.

These initiatives align with the government's "Reinvent Thailand" strategy, which aims to restructure the economy and enhance the country's competitive capabilities. The Chamber has indicated its willingness to facilitate cooperation between the public and private sectors to ensure the effective implementation of these measures.

The new tax is expected to take effect on January 1, 2570 in the Thai Buddhist calendar, which corresponds to 2027 in the Gregorian calendar. Consumers may soon face higher prices for imported goods purchased online.