BANGKOK, 8 September 2013 The Ministry of Finance will lower import duties on luxurious goods to 0% from 30% in an effort to promote Thailand as “Shopping Paradise.” The tax cut is expected to take effect within this year.
According to Permanent Secretary for Finance Areepong Phucha-um, luxury goods entitled to the 0% import duties included brand-name perfume, cosmetics, watches and clothes. These products have been subject to duties as high as 30% in Thailand, whereas luxury taxes in Singapore and Hong Kong are 0%. The tax decrease would attract more foreign tourists to Thailand and stimulate the domestic economy, the official said.
The ministry will try to assist Thai entrepreneurs affected by the 0% luxury tax policy, especially those in the textile and fashion industries, so that they will be able to compete, Mr Areepong said.