Reducing import duties on luxury goods has become a trend as last year China slashed import duties on goods ranging from shoes to cosmetics to boost spending at home, where the economy is slow and high taxes often prompt consumers to shop abroad.
And due to this, Thailand luxury goods import duties are also expected to reduce this year. Slicing import duties often makes a nation more attractive from shopping perspective.
Thailand is mainly known for its fast-growing regional retail destination along with Bangkok. With this import duty cut, the shopping destination for foreigners will throw a direct challenge to Singapore and Hong Kong, which are currently one of the favourite for regional tourist spending.
The Customs department of the Country is currently studying the propositions of the move to ensure it will not affect local businesses, and might limit the reduction to selected products that are not manufactured in Thailand.
It is believed that removing 30 per cent tax on luxury goods would make the country a leading tourist destination for luxury goods shopping in Asia, potentially boosting tourist spending on shopping by 15 to 20 per cent. And the add-on advantage that Thailand has over Singapore is that the country overall offers more attractions at a lower cost to the Foreign tourists. This cut will also help in attaining the goal of the duty cuts by encouraging consumers to spend more domestically.
Overall we can’t say how much will it affect or serve the purpose of the nation, but what we can conclude is that we can get more stuff at a fairly cheaper price.