Thailand is on its way to becoming a shopping mecca like Hong Kong and Singapore, as the Cabinet is expected to cut import duties on designer goods in a couple months.
"The government has a policy for Thailand to be a shopping paradise so it will reduce the tax on luxury imports to a competitive level with other countries like Singapore and Hong Kong, which have zero tariff on luxury goods like perfumes and cosmetics," Areepong Bhoocha-oom, permanent secretary at the Finance Ministry, said yesterday.
Lower customs taxes on luxury goods, which local shopping-mall operators have been waiting for years, could draw more foreign visitors and spur domestic spending.
The ministry's move comes as the economy braces for low exports and declining domestic spending. Also likely to hurt this year's growth are possible military strikes on Syria, which could push up oil prices and further dampen domestic spending. With delayed government projects, the tourism industry, expecting 26.2 million foreign arrivals this year, is now the only promising economic engine.
"But Thailand still subjects such goods to 30-per-cent duties. If tourists come to Thailand and can purchase all they want here, it would boost spending per tourist," he said.
Full Story: The Nation
Govt mulls import duty cuts on designer goods
Govt mulls import duty cuts on designer goods
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