Thailand´s new government announces first economic measures

Thailand approved a measure to boost the tourism sector for the upcoming high season. Tourists from China and Kazakhstan may enter the Kingdom under a visa exemption during the period of 25 September 2023 to 29 February 2024. Prior to Covid, Chinese tourists were a main driver of the Thai tourism industry and Thailand aims to return to these levels. 

   

In this regard, airlines have announced to add additional flights between Thailand and China. However, the government made it clear that this measure is temporary, and the impacts will be assessed. 

Furthermore, the government approved cutting the excise tax on diesel fuel by 2.5 THB per liter. Depending on the type of fuel, the rate is between 5 and 6 THB; thus, the reduction is significant. The government explained that this should lower the price for diesel to about or below 30 THB per liter. 

     

The measure would primarily and directly impact businesses, especially transport which, ideally, should benefit consumers. The measure is scheduled to enter effect on 20 September. Additionally, the government is working on plan to cut prices for electricity to 4.104 THB per kwh

The government has extended the current VAT rate of 7 percent for another year. The statutory rate is 10 percent, however, it has been reduced to 7 percent for years by Royal Decree.