BANGKOK — Thailand's Finance Ministry is considering a new departure tax that would initially charge THB1,000 (about $30) each time a traveler leaves the country by air, regardless of nationality, under draft legislation now open for public consultation.
The Revenue Department has published the principles of the proposed Departure Tax Act, which would replace the approach under Thailand's existing 1983 legislation. Public consultation runs until Oct 29.
The Finance Ministry said the proposal was intended to make more effective use of state resources within the fiscal-discipline framework and provide greater flexibility in responding to potential future emergencies.
In the first phase, anyone leaving Thailand by air would generally be liable for the THB1,000 departure tax each time they travel, unless they qualify for an exemption.
The legislation would allow the rate to be set by ministerial regulation, provided it does not exceed THB5,000 for each departure.
The proposed system differs from the 1983 departure-tax regime, which applied to Thai nationals and foreign nationals with permanent residence in Thailand.
That system originally charged THB1,000 for air departures and THB500 for departures by land or sea. Land and sea travel was exempted from the tax from 1986, followed by air travel from 1991.
The Revenue Department states that the existing regime is currently exempt from collection in all cases.
Under the new proposal, travelers would be required to pay the tax before leaving Thailand.
Airlines or their ticketing agents would generally collect it at the same time as the airfare. Where no ticket is purchased or issued, or no fare is paid through a carrier or ticket agent, payment would follow procedures prescribed by the Revenue Department's director-general.
The change would affect not only passengers but also international passenger carriers, ticket agents, airport operators and government agencies involved in international travel, including the Immigration Bureau, Department of Airports and Civil Aviation Authority of Thailand.
For air passengers, the proposed exemptions would broadly follow those used for the Passenger Service Charge.
They include specified members of the Royal Family and their entourages, the Supreme Patriarch and entourage, foreign heads of state, official government guests, children aged two or under, inspection teams from the Organisation for the Prohibition of Chemical Weapons and passengers traveling on government aircraft.
International transit passengers who remain within designated transit areas would also be exempt, as would certain passengers required to remain at an airport while changing aircraft.
Crewmembers and other transport personnel traveling without paying a fare while carrying out duties for their employer would not be subject to the tax.
Penalties
The proposal would give authorized officials powers to assess and collect unpaid taxes, penalties and surcharges, as well as issue summonses and examine or seize relevant documents where permitted by law.
Failure to pay or remit the tax could result in a penalty equal to twice the amount of tax due, together with a surcharge of 1.5 percent per month or part of a month on unpaid tax.
The draft also provides sanctions for tax evasion or attempted evasion through false statements, false evidence or other fraudulent means, as well as for obstructing officials or failing to comply with statutory obligations.
If enacted, the legislation would take effect 180 days after publication in the Government Gazette.
Travelers who bought their tickets before the law took effect would not be liable for the new tax, even if their departure occurred on or after its commencement date.
The proposal remains under public consultation and has not yet taken effect.
The Revenue Department is accepting comments from travelers, airlines, ticket agents, airport operators, public agencies, businesses and the general public until Oct 29.
