E-commerce tax increase up to 30% to aid Thai producers

Thansettakij•Economy•29m ago

Reader Briefing

Kasikorn Research Center analyzes a proposed government plan to increase import duties on E-commerce goods by up to 30% by January 2027.

•The government plans to adjust tax criteria for goods ordered from abroad via E-commerce by January 2027.
•Import duty ceilings for certain product groups will increase by up to 30%, while the 7% VAT remains.
•Thai producers may benefit from a reduced price gap with cheap imports, though competition remains intense.
•Online merchants using pre-order models and consumers may face higher product prices.

•The government plans to adjust tax collection criteria for goods ordered from abroad via E-commerce by January 2027.
•The government will cancel previous general duty reductions and increase the import duty ceiling for some product groups up to 30%.
•Product groups with a 30% increase include imitation jewelry and communication equipment; 20-25% for eyewear, sports equipment, and headphones; and 10% for steel goods and bags.
•Normal commercial imports such as B2B that pass through regular customs procedures will maintain existing duty rates and FTA privileges.
•Kasikorn Research Center notes that the government will collect more tax revenue and Thai producers may benefit from reduced price gaps with imports.
•Kasikorn Research Center states that the benefit for Thai producers depends on their own cost management abilities to remain competitive.
•During 9M2569, the import volume index for consumer goods expanded by 8% YoY while domestic production capacity remained below 50%.
•Domestic production capacity levels are specifically low for metal kitchenware (17.5%), handbags/travel bags (30.2%), and electrical appliances (46.2%).

Full article content is available on the original source.

Kasikorn Research Center(ศูนย์วิจัยกสิกรไทย)

The entity that analyzed the government's proposed E-commerce tax adjustments and their impacts.