Thailand to introduce compulsory travel insurance/tourist tax

[Dannie Boy]

It’s all a bit vague at the moment but it’s certainly possible that expats with a long term visa will be exempt and treated like a Thai resident, not a tourist?


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[buksida]

When the chips are down Thailand does what it does best, tax em then tax em more ...

Thailand ponders reviving outbound travel tax
The Revenue Department is studying the feasibility of reviving an outbound travel tax on Thai nationals.

Officials are researching practices in other countries, especially developed nations, that have similar taxes in place, said Pinsai Suraswadi, director-general of the department.

Thailand has imposed a departure tax on all travellers, Thai and foreign, since 2007. Currently 700 baht, it is automatically included in the price of international air tickets. The outbound travel tax, if adopted, would be collected separately.

The country first imposed an outbound travel tax in 1981 in response to an economic crisis because the government wanted to prevent capital outflows. The levy applied to individuals travelling abroad by land, sea or air.

However, the tax was gradually exempted and then abolished.

Mr Pinsai said that during the period when the travel tax was in place, even in times of economic crisis, Thais continued to travel abroad.

Although the tax generated revenue, the collection costs were high and rendered it inefficient, leading to its eventual discontinuation, he said.

In the past, travellers had to purchase a coupon from designated booths before departing the country, which incurred high operational costs.

The Revenue Department is now considering alternative methods such as online payment platforms or through the mobile app of Krungthai Bank (KTB).

“The department is studying whether it is appropriate to impose this tax. If implemented, the department is considering which method should be used for tax payment,” said Mr Pinsai.

“The payment method may need to be updated, either through an online system or via the KTB app.”

In addition to an outbound travel tax, the department plans to encourage individuals to repatriate income earned from foreign investments by offering a tax exemption for a two-year period. After two years, normal tax rates would apply.

The details of this policy are still being finalised, said Mr Pinsai.

https://www.bangkokpost.com/business/ge ... travel-tax

[buksida]

Thailand delays tourist entry fee until 2026 as arrivals dip and economy falters
Thailand has postponed the rollout of its long-discussed – and frequently delayed – entry fee for tourists, citing sluggish visitor numbers and economic uncertainty.

Initially expected to take effect in 2025, the 300-baht “kha yeap pan din” (“stepping onto Thai soil”) fee will now be pushed back to the middle of 2026, according to the Ministry of Tourism and Sports.

Approved in principle by Thailand’s cabinet in February 2023, the fee would apply to all foreign visitors arriving by air, with a reduced rate of 150 baht for those arriving by land or sea. The funds would go toward projects that improve tourism infrastructure and provide insurance coverage for travellers.

But Assistant Tourism Minister Chakrapol Tangsutthitham confirmed this week that the government is holding off until demand rebounds.

https://ca.news.yahoo.com/thailand-dela ... 46286.html

[Big Boy]

You have to wonder why?

From memory, one of the main reasons for introduction was cited as the number of unpaid hospital bills by tourists. Does this mean we get a better class of tourist these days who pay their bills? Certainly, my recent hospital experience showed that they weren't going to fix me until I could confirm that I could pay. Also private hospitals such as BH make you pay up front.

Does this mean the hospitals have sorted the problem themselves, and there is no actual need for the insurance?

[buksida]

I don't think it has anything to do with hospitals, its simply another tax that will go into state coffers for them to fritter away as they please. Tourists (and expats) already get taxed, paying 10x more than locals at parks, events, and attractions so its nothing to do with improving them either. They also pay departure tax which is rolled into flight tickets.

[Big Boy]

Time has moved on, and you are probably right now. However, going back to the OP, it was stated:

The Tourism and Sports Ministry is planning to make it compulsory for all foreign tourists to have travel insurance before entering the Kingdom because unpaid bills are putting a huge strain on cash-strapped public hospitals in major destinations, particularly Phuket.

[404cameljockey]

You have to wonder why?

From memory, one of the main reasons for introduction was cited as the number of unpaid hospital bills by tourists. Does this mean we get a better class of tourist these days who pay their bills? Certainly, my recent hospital experience showed that they weren't going to fix me until I could confirm that I could pay. Also private hospitals such as BH make you pay up front.

Does this mean the hospitals have sorted the problem themselves, and there is no actual need for the insurance?

My scheduled knee operation at BH two years ago wasn't paid in advance by my insurer, but hospital admin did contact them via me insurance card to ensure I had cover. The bill was settled directly by the insurer after the operation. Same for my wife's emergency admission.

Yes HHH require prior proof even from locals that they are in the 30 Baht cheap insurance scheme, but for my friend's road accident they required me to sign a form in advance saying that I would be responsible for the actual physical surgery part of the admission. She was a little late taxing and insuring her bike and was in the process of doing it that day, but Sod's Law deems that the accident will happen before the tax is done. I can't complain because I let my compulsory car insurance accidentally lapse once a few years ago (honest, I was doing it online with an insurance company so didn't renew it at the motor tax office) and was two or three days out of cover when I had a road collision.

Back to topic: as far as soaking (oops, taxing) tourists goes for a little extra, at least hospitals will recover funds and it's not a financial deal breaker for most visitors, despite many polled saying they will visit another country instead (not believable, unless we're talking about the Chinese 'one price' tour parties that don't spend a penny in Thailand anyway).

[Big Boy]

My scheduled knee operation at BH two years ago wasn't paid in advance by my insurer, but hospital admin did contact them via me insurance card to ensure I had cover. The bill was settled directly by the insurer after the operation. Same for my wife's emergency admission.

I've had 2 operations at BH and my wife 1. All had to be paid in advance.

[Dannie Boy]

The delay in implementation is nothing to do with hospital fees, simply a reaction to the declining number of tourists - hit them with another fee (even though compared to ticket prices it is quite small) and the numbers would go down even further!!


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[Big Boy]

Yes, very true. However, my question is have they forgotten the purpose of the insurance? The OP is 2013 - 12 years ago. Have they put in smarter systems since 2013 negating the need (other than fleecing tourists) for the fee anyway?

[Big Boy]

Going back to the origin of the thread, it was stated tourists were responsible for ฿200M in unpaid medical bills annually. It would be interesting to know a current figure.

[buksida]

You're not going to get much insurance for ten bucks anyway, considering what the hospitals here charge. It's just another tourist tax under the guise of "let them think they're getting something."

Either way, good news that it has been delayed.

[Dannie Boy]

Yes, very true. However, my question is have they forgotten the purpose of the insurance? The OP is 2013 - 12 years ago. Have they put in smarter systems since 2013 negating the need (other than fleecing tourists) for the fee anyway?

As Buks said, I think it was always just another tax for the coffers - someone might have mentioned medical costs but it was really B300 x 40 million = 12 billion - not to be sniffed at!!


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