Thailand’s Finance Ministry has defended its proposed 1,000-baht departure tax after mounting opposition from the tourism industry, arguing that the measure would strengthen government finances and help support tourism.
Finance permanent secretary Lavaron Sangsnit said the tax would target people with the means to travel overseas, with the revenue going to the state to ease budget pressure and support tourism recovery.
He said the 5,000-baht figure contained in the draft legislation is only the maximum permitted rate. The actual charge expected under secondary legislation would be 1,000 baht per person.
The tax would apply to both Thai and foreign travellers leaving the country by air and would be included in airline ticket bookings rather than collected separately at departure.
Lavaron said a similar tax had previously been collected at 500 baht from Thai travellers, while the new proposal would cover both Thais and foreigners based on equal treatment.
He said part of the revenue collected from departing foreign tourists could also be used to fund insurance or emergency medical assistance for international visitors.
The ministry is considering whether such a scheme could reduce duplication and potentially replace the separate proposed inbound tourism fee, commonly known as the tourist entry fee.
The Tourism Council of Thailand (TCT), however, has formally opposed introducing the 1,000-baht departure tax.
TCT president Chai Arunanondchai said the council had written to the finance minister, tourism and sports minister and Revenue Department director-general arguing that the measure could cause more economic harm than the revenue it generates.
The council said the tax would directly raise the cost of international travel, particularly for families, students studying overseas, small-business operators, people travelling for work and others who need to leave the country.
When added to airfares, airport charges, insurance and accommodation costs, the additional tax could cause some travellers to postpone trips, travel less frequently or change destinations, the TCT said.
The council also warned that adding another travel cost could weigh on consumer confidence and spending while living costs remain high.
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