Cabinet extends VAT on low-cost imports until end of 2025

The Cabinet on Tuesday decided to extend the period of charging value-added tax (VAT) on imported goods costing less than 1,500 baht by another year, the premier said.

Prime Minister Paetongtarn Shinawatra told reporters after the weekly Cabinet meeting that the measure to slap VAT on imported goods priced less than 1,500 is set to expire at the end of the year. However, she said, the Cabinet approved the Finance Ministry’s proposal to extend the measure from January 1 to December 31, 2025.

The Cabinet decided to slap VAT on low-priced imported goods to create a level playing field for local small businesses, which have been facing competition from cheap imports, especially from China.

Earlier, no VAT was imposed on imported items costing less than 1,500 baht, prompting Thai SMEs to cry foul, as they had to pay taxes, which pushed up the price of their goods, making it difficult to compete against cheap imports.

Speaking at the same press conference, Deputy Finance Minister Paopoom Rojanasakul said the one-year extension was aimed at allowing the Revenue Department and the Customs Department to develop and link their online tax collection platforms first. Paopoom reckoned the platforms should be ready within a year.