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There are two perspectives regarding the Customs Department’s readiness for implementing import taxes on items worth under 1,500 baht starting January 1, 2026, as stated by Kulthirath Pakawachkrilers, head of the Thai e-Commerce Association.

On the other hand, it will advantage Thai manufacturers and local sellers who have been covering full import fees and value-added tax (VAT) on more expensive products, she mentioned. This adjustment promotes more equitable competition against international sellers, particularly those delivering low-cost items from China or other nations that previously entered Thailand without charges.

On the other hand, this will raise expenses for Thai importers or small vendors who depend on bringing in low-cost items from different countries. They will need to handle increased import costs, either by taking the hit themselves or transferring the burden to customers via elevated retail prices.

“If we contrast this with China’s cross-border e-commerce [CBEC] policy, China actually adopts a more incentive-focused strategy,” Ms. Kulthirath noted.

With regard to CBEC retail imports, China waives customs duties (0%) and applies 70% of the standard VAT rate (resulting in 9.1% instead of 13%).

Each individual also benefits from an annual tax-exempt allowance of 26,000 yuan (approximately 128,000 baht), which has effectively motivated consumers to buy items from China through authorized cross-border e-commerce platforms like Tmall Global and JD Worldwide.

Ms. Kulthirath stated that although China’s system aims to boost e-commerce development and international trade, Thailand’s recent policy emphasizes achieving tax equity between local and foreign sellers, as well as boosting government income from the rapidly expanding e-commerce industry.

Both nations strive to address the same issue — yet they are engaging in different policy approaches. China encourages development via incentives, whereas Thailand focuses on balance through enforcement and financial stability.

Entrepreneurs in the e-commerce sector previously suggested that Thailand implement Indonesia’s approach, which bans the sale of imported items costing under US$100 on online marketplaces, with the goal of protecting domestic manufacturers and improving the quality of imported goods.

Business executives also urged the Customs Department to enhance its openness and advocated for the development of a centralized digital customs system integrated directly with online shopping platforms.

As stated by Phantong Loykulnanta, the director-general of the Customs Department, this effort is a component of the department’s strategy within the government’s “Quick Big Win” approach.

The initiative is anticipated to create approximately 3 billion baht in extra customs income, derived from the import value of products costing under 1,500 baht that were previously free from VAT and import taxes.

Provided by SyndiGate Media Inc. (Syndigate.info).