Thai government considering 7% VAT on Chinese goods under $40 to protect local businesses. China is Thailand‘s largest trade partner with investments in industrial development and tourism.
Thai Government Considers Imposing VAT on Chinese Goods
The Thai government is contemplating enforcing a seven percent value-added tax on Chinese products priced below 1,500 baht (US$40) that are funneled through Thailand‘s free trade zones to safeguard local businesses affected by an influx of inexpensive imports. Presently, goods under the 1,500 baht value are exempt from duties and VAT.
Impact of Chinese Imports on Local Industry
The Federation of Thai Industries has asserted that Chinese imports have led local manufacturers to reduce production by approximately 50 percent. Moreover, data from the Bank of Thailand shows that imported consumer goods comprised 24 percent of total imported goods…
