Thai customs to impose VAT on all postal imports

The Customs Department of Thailand next month is set to begin levying value-added tax (VAT) on all imported goods sent through postal services, regardless of the items’ value. This move comes in response to low-priced imports from China that have been flooding the market, providing an unfair edge as domestic producers are taxed.

Currently, imported goods sent via postal services are not subjected to import duties and VAT if the cost, insurance, and freight (CIF) value of each item is declared to be less than 1,500 baht. However, the Finance Ministry plans to enforce the collection of VAT on all imported goods, irrespective of their value, while still maintaining the exemption from import duties.

The finance permanent secretary, Lavaron Sangsnit, disclosed that the Customs Department will swiftly proclaim this new tax collection policy, which is a faster solution than revising the…