Thailand considers 1,000-baht fee for international departures — Bangkok Post

Thailand’s Ministry of Finance is considering reinstating a tax for passengers departing the country on international flights. The initial rate could be 1,000 baht per departure. As Bangkok Post reports, the payment is planned to be included in the price of an airline ticket.

A 1983 law set the maximum tax rate at 5,000 baht per departure. At the same time, a ministerial regulation to be issued after the law enters into force is expected to set the initial rate at 1,000 baht. Those leaving Thailand by land or sea are proposed to be exempt from payment.

Who the fee may apply to

The tax is proposed to apply to travelers of all nationalities leaving Thailand by air. According to the ministry’s plan, the fee would not apply to passengers who bought tickets before the law enters into force, even if their departure takes place after that date.

Children under two years old, international transit passengers who do not leave the designated transit area, and passengers who remain at the airport while transferring to a domestic flight may be exempt from payment. The list also includes members of the royal family, foreign heads of state and their accompanying persons, official government guests, inspection teams of the Organisation for the Prohibition of Chemical Weapons, and passengers of government aircraft.

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Revenue and penalties

The ministry estimates potential additional annual revenue from the departure tax at 12 billion baht. The initiative is one of ten tax changes the department is considering to increase state revenue amid a persistent budget deficit and the public debt-to-GDP ratio approaching the legally established limit of 70%.

The draft provides for penalties for tax evasion, submitting false information or evidence, and obstructing officials in their work. A surcharge may reach twice the amount of the tax liability, while an additional charge on the unpaid amount would be 1.5% per month.

Thailand already introduced a departure tax in 1983, explaining it by the need to curb an excessive outflow of foreign currency and support the balance of payments. In 1991, air passengers were exempted from the fee, while the tax for departures by land and water was abolished in 1986. The bill is currently undergoing public consultations, which will continue until October 29.