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Thailand’s Revenue Department to Impose E-Commerce Tax to Protect Local Businesses

Thailand is especially wary of Chinese e-commerce operators that are operating in the country. – AP Photo

 

BANGKOK – Thailand’s Revenue Department seems determined on ensuring that the country does not follow the trends set by the United States and China, with the Asian country’s Revenue Department gearing up to amend a tax law to include e-commerce so that Thai e-commerce operators and small business owners are able to compete on a level playing field against foreign cross-border online enterprises.

The Thai E-Commerce Association has played a major part in the proposed tax amendments, with the organization urging the government to create and implement regulations that would foster fair competition among local and foreign businesses.

Apart from this, the e-commerce organization is also calling on the government to apply anti-dumping laws to firms operating online, according to a report from The Nation.

By doing so, the e-commerce organization is attempting to avoid a situation where the country’s online market gets dominated by one major online player.

Speaking on a panel at the Thailand E-Commerce Week 2017, Patricia Mongkhonvanit, deputy director-general of the Thai E-Commerce Association, emphasized the need to foster a fair and equal playing field for the nation’s local online entrepreneurs and foreign enterprises servicing Thailand.

“The Revenue Department will emphasize fair competition among traditional and online businesses. We will not issue any special law for e-commerce or endorse any tax rate for online business, as we need to treat everyone equally,” Mongkhonvanit said, according to a Bangkok Post report.

If the E-Commerce Association’s initiatives bear fruit, Thailand would be able to avoid the fate that ultimately befell China and the United States, countries where e-commerce is dominated by one huge player and very little else. China’s e-commerce, after all, has become synonymous with Alibaba, and the United States’ online retail sphere is dominated by Amazon.com.

According to Pawoot Pongvitayapanu, president of the Thai E-Commerce Association, the economic benefits of embracing foreign e-commerce operators like Alibaba and JD.com are limited for the short-term.

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Posted by on Nov 27 2017. Filed under Economy & Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
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