The Finance Ministry is moving ahead with the proposed 1,000-baht levy on all outbound passengers with the aim of increasing government revenue.
Finance permanent secretary Lavaron Sangsnit said that with government revenue insufficient to cover rising expenditure, finding new fiscal instruments and sources of revenue has become an important challenge.
One proposal currently under discussion and open for public consultation is the introduction of an outbound travel tax.
In addition to generating direct revenue for the state, the measure would serve as an important mechanism for demonstrating fiscal discipline, helping to maintain confidence in Thailand and preserve the country’s credit rating.
Mr Lavaron said the tax is primarily intended to target people with the financial means and purchasing power to travel abroad. The revenue collected could help ease the burden on the national budget and be allocated directly to promoting and revitalising domestic tourism.
Thailand previously imposed an outbound travel tax of 500 baht between 1991 and 1996. At the time, travellers were required to purchase a tax stamp and attach it to their passports before passing through immigration.
Reviving the measure, therefore, would not be entirely new. Rather, it would be a way to reinforce fiscal discipline and establish a clear source of funding to support government programmes.
Under the draft legislation, the maximum tax rate would be capped at 5,000 baht.
Mr Lavaron explained that setting the ceiling as high as 5,000 baht in the primary legislation is intended to prevent the executive branch from exercising its authority arbitrarily, while also providing flexibility to adjust the rate in the future without having to frequently amend the main law.
The actual tax rate would therefore be determined through secondary legislation in the form of a Royal Decree.
The rate is expected to be around 1,000 baht, which is considered appropriate given current economic conditions, compared with the 500-baht rate imposed more than 30 years ago.
He also noted that the previous law applied only to Thai nationals. Under the principles of modern taxation and administration, however, there has been a proposal to extend the tax to both Thai nationals and foreign tourists departing Thailand, based on the principle of equal treatment.
Foreign tourists also make use of Thailand’s resources during their stay; therefore, they should share the burden on an equitable basis when departing the country, he said.
Regarding collection, Mr Lavaron said the tax would be collected through airline tickets, in a manner similar to value-added tax (VAT). This approach would make the process more convenient and eliminate the need for the tax collection kiosks used in the past.
If the tax is also imposed on foreign tourists, the government could allocate part of the revenue to providing travel insurance or emergency medical coverage for visitors. This could also help avoid duplication with the proposed inbound tourism fee, commonly referred to as the “land entry fee”.
He added that credit rating agencies place considerable importance on a government’s fiscal stability and discipline. If the government can clearly explain its sources of financing without relying on additional public borrowing, this would help to maintain Thailand’s credit rating.
Furthermore, all revenue collected must be remitted to the national treasury in accordance with the State Fiscal and Financial Discipline Act, 2018.
This would ensure that the revenue is incorporated into the national budget system, where it can be managed transparently, disclosed to the public, and properly scrutinised through the legally established budgetary process.