Thailand’s Revenue Department is exploring the possibility of reintroducing an outbound travel tax for Thai citizens. The department’s officials are examining the practices of other countries, particularly developed nations, that have similar taxes in place, according to Pinsai Suraswadi, the department’s director-general.
Thailand has had a departure tax since 2007, which is currently set at 700 baht and included automatically in the price of international airline tickets. If reintroduced, the outbound travel tax would be collected separately from the ticket fare.
Historically, Thailand first implemented an outbound travel tax in 1981 to curb capital outflows during an economic crisis. This tax applied to all modes of travel—land, sea, and air. Over time, the tax was gradually phased out and eventually abolished. During the period when the tax was active, Thais continued to travel abroad despite economic challenges. While the tax generated revenue, the high collection costs and operational hurdles, such as requiring travelers to buy coupons at designated booths, made it inefficient.
The Revenue Department is now considering alternative collection methods, including online payment systems or transactions via the Krungthai Bank (KTB) mobile app, to improve efficiency and convenience. Mr. Pinsai noted that the department is assessing whether imposing the tax is appropriate and is exploring suitable payment platforms.
In addition to the outbound travel tax, the department is contemplating a policy to encourage repatriation of income earned from foreign investments, potentially offering a two-year tax exemption. After this period, normal tax rates would resume. Details of this proposal are still being finalized.
However, this move has drawn some criticism. Chotechuang Soorangura, vice-president of the Thai Travel Agents Association, expressed concern that introducing such a tax could negatively impact travel sentiment and the overall tourism industry. The travel sector relies heavily on both inbound and outbound tourists and the connectivity between key countries, which could be disrupted by additional costs.
He also pointed out that collecting the tax separately from airfare could be challenging, citing the difficulties experienced when the tax was previously imposed 44 years ago. Notably, some countries, like Japan, embed outbound taxes within airline fares, applying them universally to all passengers regardless of nationality.
While the government aims to enhance revenue sources, critics argue that taxing travelers during an economic downturn may be unreasonable, especially when the current economic environment is quite different from four decades ago.
