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

Kedah MB must explain why BZI pulled out of RM40bil Langkawi project, says Sg Petani MP
Children suffer as schools go online in polluted and worsening air conditions in Delhi
Pahang exceeds RM1bil in revenue collection for a third straight year
Jaiswal slams unbeaten 90 as India seize control against Australia; Rahul chips in stylish 62
Hong Kong seniors celebrate life with mass marriage vow renewal
Asean News Headlines at 10pm on Saturday (Nov 23, 2024)
Rallying-Neuville fights back in Japan to close on first world title
Vietjet launches Hanoi-Kuala Lumpur route, aims to boost Asean connectivity
Singaporean man nabbed for allegedly faking bomb threat at Don Mueang airport in Bangkok
After gastroscopy went wrong, Singaporean lies in vegetative state in S. Korea, waiting to go home

Others Also Read