Duty-free on arrival to be scrapped at Thai airports: Cabinet


Thai airports where duty free will be scrapped are Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, U-Tapao, Samui and Krabi. - The Nation

BANGKOK: The Cabinet on Tuesday (July 2) confirmed that all duty-free shops in the arrivals areas of Thai airports will be closed to boost spending in domestic shops, aiming to generate up to 350 billion baht annually.

Three duty free operators generated 3.02 billion baht in revenue last year at Thailand’s eight international airports, according to the Customs Office.

The airports where duty free will be scrapped are Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, U-Tapao, Samui and Krabi.

Deputy government spokesperson Rudklao Suwankiri said the move would promote Thailand as a shopping hub and stimulate the economy.

The Finance Ministry proposed the change, which requires no legal amendments as all three operators agreed to close their duty-free shops.

A Finance Ministry study found the move would have the following four impacts:

  • Foreign tourist spending: Increase in local shops by an average of 570 baht per trip.
  • Thai tourist spending: Switch to purchasing duty-free items from the country of origin.
  • Domestic businesses: Duty-free operators will lose revenue, but the extra 3.46 billion baht generated per year will boost overall production, investment and employment.
  • Public sector: Higher tax revenue, especially income tax and VAT, due to circulation of funds to more businesses.
  • Economy: Expected to boost Thai GDP by 0.012 per cent annually. - The Nation/ANN

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Thailand , Bangkok , duty-free , airports , scrap , shops

   

Next In Aseanplus News

Asean news headlines as at 10pm on Tuesday (Nov 5)
Mount Fuji is still without its iconic snowcap for the first time in 130 years
Bernama, China Media Group exchange MOU to strengthen media cooperation
Thailand plans to resume talks with Cambodia over border disputes
Lao People’s Revolutionary Party calls for action to address economic woes
Myanmar ethnic groups slam China as they begin talks with India
Anwar, Li witness exchange of documents on BRI cooperation plan
Flight aborted after passenger claims engine caught fire in Papua
HK actor Gilbert Lam shares month-long health struggle, relies on walker to get around
How the US elections will impact the Philippines

Others Also Read