Thailand Considers Luxury Goods Tax Cut

[george]

Thailand considers luxury goods tax cut

BANGKOK: -- Officials in Thailand are considering three proposals that would cut taxes on luxury goods in an effort to better compete for tourist dollars.

Thai retailers say they could better compete with Singapore and Hong Kong for tourist dollars if Thailand's heavy taxes on imported luxury goods were lowered, the Bangkok Post reported Saturday.

"The thinking is that these are the possible options if the policy is to have foreign tourists who, besides visiting Thailand's natural and cultural attractions, also want to shop for luxury goods, can do so without tax being a barrier," said Sathit Limpongpan, the customs director-general.

One option would open "tax-free shops" shops near international airports in Bangkok, Chiang Mai and Phuket, where tariffs would be exempted for foreign tourists.

Another option would allow entire shopping complexes to offer tax-free goods, while a third option calls for establishing a tax-free zone, such as the popular resort island of Phuket.

--UPI 2004-12-12

[astral]

This will be a waste of time and money, if the "duty free" area in the Don Muang airport is anything to go by.

A Sony camera bought for 11,900 baht the Sony shop in Bangkok was priced at 13,900 in the airport.

Duty free, my foot.