Thailand’s Finance Ministry is studying a new departure tax that would initially charge travellers of all nationalities 1,000 baht each time they leave the country by air.
The Revenue Department has been tasked with considering a draft Departure Tax Act, with the proposed tax capped at no more than 5,000 baht per departure.
The proposal is still under consideration and has not yet taken effect. A first round of public consultation on the draft runs from September 30 to October 29.
Under the proposal, anyone leaving Thailand, regardless of nationality, would generally be liable for the tax unless they fall under an exemption set out in ministerial regulations.
During the initial phase, the 1,000-baht charge would apply only to air travel. Departures by land or sea would initially be exempt.
The Finance Ministry said the proposal is intended to improve fiscal flexibility and help the government respond to future emergencies.
Who would be exempt?
Some air travellers would be exempt under rules broadly matching existing exemptions from the Passenger Service Charge.
These would include the King, Queen and specified members of the royal family and their entourages, the Supreme Patriarch and accompanying officials, foreign heads of state and their entourages, and official guests of the government.
Children aged two years or younger would also be exempt, along with inspection teams from the Organisation for the Prohibition of Chemical Weapons.
Passengers travelling on Thai or foreign government aircraft, or other aircraft being used on official government missions, would not have to pay.
International transit passengers who remain within the transit area would also be exempt, as would passengers required to remain inside an airport while changing aircraft under the conditions set out in the draft.
Transport workers travelling without paying a fare as part of their duties for the transport operator that employs them would also fall outside the tax.
How the tax would be collected
Travellers would be required to pay the tax before leaving Thailand.
International passenger transport operators or ticket agents would generally collect it together with the fare.
Where no ticket is purchased, no fare is paid through an operator or ticket agent, or no ticket is issued, the traveller would have to pay the tax under procedures later prescribed by the Revenue Department director-general.
The proposed system would affect not only travellers but also international transport companies, ticket agents, airport operators and government agencies involved in overseas travel, including the Immigration Bureau, Department of Airports and Civil Aviation Authority of Thailand.
Private organisations involved in aviation, transport and tourism could also have to adjust their systems if the law is enacted.
Penalties for non-payment
The draft would give officials powers to assess and collect unpaid tax, penalties and surcharges, as well as issue summonses or orders and inspect or seize accounts, documents and other relevant evidence where permitted by law.
Failure to pay could result in a penalty equal to twice the amount of tax owed.
An additional surcharge of 1.5% per month, or part of a month, could also be imposed on unpaid tax, excluding the penalty itself.
The draft also provides penalties for attempts to evade the tax, including making false statements, presenting false evidence or using other methods to avoid payment.
Obstructing officials, failing to cooperate or failing to perform duties required under the law could also lead to administrative fines depending on the offence.
The tax rate would ultimately be set through ministerial regulations but could not exceed 5,000 baht for each departure from Thailand.
If passed, the law would take effect 180 days after publication in the Royal Gazette.
Travellers who bought their tickets before the law took effect would not have to pay the new tax, even if their departure date fell on or after the date the law became enforceable.
Thailand previously had a departure tax
Thailand introduced an overseas travel tax under an emergency decree in 1983, which took effect on December 28 that year.
The previous system charged 1,000 baht for departures by air and 500 baht for departures by land or sea.
Land and sea travel were exempted from the tax from May 1, 1986, followed by air travel from July 1, 1991.
Unlike the old system, which applied to Thai nationals and foreign nationals permitted to reside in Thailand, the new proposal would cover travellers of all nationalities.
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