30 Sep 2014
Thailand to consider scrapping excise tax on spa fees to promote tourism
BY Helen Andrews
Thailand’s excise department is to consider supporting tourism by abolishing tax levied on profits made by the country’s golf courses and spas.
The excise department’s general director, Somchai Poolsawasdi, revealed that Thailand’s finance minister, Sommai Phasee, is looking at ways to reform the nation’s tax structure to promote both tourism and public health.
“The tax exemption [on spas and golf courses] could help promote tourism,” said Poonsawat. “It will encourage more tourists, especially those who enjoy niche activities.”
Taxes on spas and golf courses contribute several hundred million Thai bhat (THB) to the excise department, according to The Bangkok Post. The department levies a 10 per cent excise tax on golf course membership fees and another 10 per cent on golf course services.10 per cent is again charged on spa service fees. Spas approved by the Public Health Ministry, however, are exempt from the tax.
Phasee believes his finance department should review the taxes, which he says are outdated and unfair.
The national tourism industry currently accounts for less than ten per cent of GDP because martial law has discouraged foreign visitors.
The Tourism Authority of Thailand has cut its 2014 tourism target several times. Its latest goal is 1.9 trillion THB (US$59bn, €46bn, £36bn) in revenue and 25.5m arrivals – down from the 28m arrivals projected earlier in the year.
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