TRA Urges Instant VAT Refund Scheme to Boost Thailand’s Retail and Tourism Sectors

• The Thai Retailers Association (TRA) is urging the government to implement an instant VAT refund scheme for tourists and establish a free-trade-zone sandbox in tourist areas like Phuket.
• The TRA president, Nath Vongphanich, highlighted challenges in the Thai retail industry, including declining consumer spending and tourism growth.
• A report by Kasikorn Research Center predicts a slowdown in retail sector growth to 3.4% in 2024-2025 from 5.9% in 2022-2023.
• The TRA proposed a 7% VAT refund for tourists to boost spending and attract more visitors.
• A minimum spending threshold of 3,000 baht per day at a single store is suggested to qualify for the refund.
• The association recommends reducing import duties on lifestyle items, starting with US products, to enhance Thailand’s appeal as a shopping destination.
• The TRA plans to discuss these proposals with the Ministry of Finance later in the year.
• The association also calls for measures to address the influx of cheap Chinese goods and suggests enforcing a 7% VAT on all imported online goods.

Source: bangkokpost.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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