Thailand will begin taxing all foreign goods sold through online platforms starting January next year, ending the current exemption on low-value imports priced under 1500 baht (US$46.30).

Customs department director-general Panthong Loikulnan said the move aims to create a fairer playing field for local businesses and boost government revenue.

“Not collecting any duties at all would give foreign goods an advantage over Thai businesses,” said Loikulnan. “This is unfair to SMEs.”

Under the new system, all imported goods, regardless of value, will be subject to customs duties and value-added tax (VAT) as required by law. The change replaces the existing tariff exemption, which expires at the end of this year.

Goods priced below 1500 baht currently account for over 30 billion baht ($927 million) in annual imports. 

Loikulnan said that applying an average 10 per cent duty could generate at least 3 billion baht ($92.7 million) in additional government revenue each year.

The system will rely primarily on data verification from online platforms, with random inspections to ensure compliance.

Moreover, Thailand’s customs department is in talks with major e-commerce operators, including Shopee and Lazada, to directly link their sales and import data.

Panthong said the reform will help level the playing field for domestic retailers who already pay taxes, especially small and medium-sized enterprises affected by the influx of low-cost imported products.

“I believe that if we delay this process, we will be at a disadvantage because all countries are beginning to see the same problem: domestic sellers pay taxes, but foreign goods are imported without paying anything,” he added.

For the longer term, Panthong suggested introducing a “lump-sum tax”, a flat rate of 20 to 30 per cent per imported package, to simplify the system and increase efficiency. However, he noted that such a change would require legislative amendments and take time to implement.