Thai Finance Ministry Proposes Outbound Travel Levy to Increase Revenue

The Thai Finance Ministry is moving ahead with a proposed 1,000-baht levy on all outbound passengers to increase government revenue, according to a Bangkok Post report. The plan sets the maximum tax rate at 5,000 baht under a draft legislation, contrasting with an initial discussion around a 1,000-baht rate for travelers departing the country.

Outbound Travel Tax Helps Maintain Thailand Credit Rating

Rising public expenditures have made finding new fiscal instruments and revenue sources an important challenge, Finance Ministry permanent secretary Lavaron Sangsnit stated. Government revenue remains insufficient to cover growing expenditure. Introducing an outbound travel tax serves as an important mechanism for demonstrating fiscal discipline, helping maintain confidence in Thailand and preserving the country’s credit rating, in addition to generating direct revenue for the state.

Lavaron explained that collecting the revenue through airline tickets in a manner similar to the value-added tax would eliminate the need for tax collection kiosks used in the past and make the process more convenient. Under the draft legislation, the maximum tax rate would be capped at 5,000 baht, providing flexibility to adjust the rate in the future without having to frequently amend the main law. The actual tax rate would be determined through secondary legislation in the form of a Royal Decree, expected to be around 1,000 baht given current economic conditions.

Thailand Previously Imposed Outbound Travel Tax from 1991 to 1996

Thailand previously imposed an outbound travel tax of 500 baht between 1991 and 1996, when travelers were required to purchase a tax stamp and attach it to their passports before passing through immigration. Revisiting the measure would therefore not be entirely new. Rather, it would be a way to reinforce fiscal discipline and establish a clear source of funding to support government programs.

Under the principles of modern taxation and administration, proposals have also emerged to extend the tax to both Thai nationals and foreign tourists departing Thailand, based on the principle of equal treatment. Lavaron noted that the previous law applied only to Thai nationals.

This approach could also help avoid duplication with the proposed inbound tourism fee commonly referred to as the “land entry fee”.

All collected revenue must be remitted to the national treasury in accordance with the State Fiscal and Financial Discipline Act, 2018. Credit rating agencies place considerable importance on a government’s fiscal stability and discipline. If the government can clearly explain its sources of financing without relying on additional public borrowing, this would help maintain Thailand’s credit rating.

The proposal is currently under discussion and open for public consultation. Official implementation timelines and final statutory rates remain subject to ongoing review by lawmakers and the executive branch.