The Thai government is considering imposing a seven percent value-added tax on Chinese goods priced less than 1,500 baht (US$40) that are routed through Thailand’s free trade zones to protect local businesses being impacted by the flood of cheap imports. Currently, goods not exceeding the 1,500 baht value are exempted from duties and VAT.
As such, the government is aiming to curb the influx of low-cost, low-quality products and protect small and medium enterprises that are vital to Thailand’s economy.
The Federation of Thai Industries has claimed that Chinese imports have caused local manufacturers to reduce production by some 50 percent. Further, according to the Bank of Thailand, imported consumer goods accounted for 24 percent of total imported goods for the first quarter of 2023. Of this, 9.1 percent came from China.
