'Chinese products unlikely to affected' by Thai 7% VAT on online imports
The Thai government’s decision to levy a 7% value-added tax (VAT) on goods imported online worth one baht or more beginning in May would not affect e-commerce of products from China, Narongsak Putthapornmongkol, president of the Thai-Chinese Chamber of Commerce, said on Friday.
Thailand had been exempting VAT for online imported goods priced at less than 1,500 baht per parcel.
Narongsak said that the 7% tax was reasonable and would not affect customers’ decision, as Chinese products sold via online channels already have affordable prices.
He added that Chinese businesses in Thailand are confident that the economy in the second half of 2024 would be better than the first half, with the Thailand's GDP potentially growing by up to 3%, driven by tourism income and exports of agricultural products.
The latter, he said, would enjoy higher prices due to reduced output as a result of drought.
He added that confidence in the Thai economy among Chinese investors was reflected in the fact that several electric vehicle (EV) manufacturers had set up factories in Thailand this year. Other Chinese industries that aimed to establish more production bases in Thailand included electronics, renewable energy and pharmaceutical businesses, he added.
Narongsak noted that over the past two months, the visa waiver policy had benefited Thailand far more than it did China, as fewer Thai tourists travelled compared to Chinese arrivals.
The chamber of commerce estimated that this year there would be 8-10 million Chinese tourists visiting the kingdom, which is a large percentage of the country’s targeted foreign arrivals of 30 million tourists in 2024, comparable to the pre-Covid level.
Narongsak added that the Thai-Chinese Chamber of Commerce plans to invite Thai and Chinese entrepreneurs in Thailand to the 7th China International Import Expo (CIIE) taking place in November in Shanghai. Participating in the CIIE would open opportunities for Thai products, especially foods, to become better known and more easily accessible in the Chinese market, he said.
