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Thailand to impose travel tax for air passengers next year [WATCH]

KUALA LUMPUR: Thailand is expected to begin collecting a 300 baht (RM39 ) travel tax next year starting with air passengers.

The Bangkok Post quoted Thailand's Tourism and Sports Minister Sorawong Thienthong as saying the move will require cabinet approval in January, and from then on, it will take another six months for it to be implemented.

"The ministry is revisiting details of the programme and will submit it for cabinet approval in January.

"Collection of the 300-baht travel tax may start with air passengers in the first phase, with the system needing at least six months before starting, according to the Tourism and Sports Ministry," the Bangkok Post reported.

The project to implement the travel tax was approved by the previous government led by Prayut Chan-o-cha in February 2023.

However, the new cabinet appointed after Thailand's general election in May that same year will need to approve its implementation.

He said once this implementation is settled among air travellers, a second phase of tourism tax involving overland travel will follow.

"According to the ministry, air travellers account for 70 per cent of foreign arrivals to Thailand.

"The transaction system has been prepared and is powered by Krungthai Bank," the daily reported.

Sorawong said tourists will make payments via a website or an app, which is being developed for the subsequent phase.

The system used in Thailand would be similar to the Korea Electronic Travel Authorisation (K-ETA), which requires travellers to register and make online payments before entering South Korea.

"Once the government approves this project, the ministry will start a procurement process to recruit software developers and insurance companies to offer insurance policies for foreign tourists," said Sorawong.

He said the 300 baht includes insurance premium for tourists, which is capped at 60 baht per person.

The insurance premium for tourists is capped at no more than 60 baht per person, out of 300 baht collected.

"The duration of protection is 30 days, as 87 per cent of tourists have an average length of stay of no more than a month, with compensation remaining the same as previous Thai tourist policies, at 1 million baht in the event of death from an accident, and 500,000 baht in case of injury."

Sorawong said the ministry was considering to adjust the fee collection to 300 baht for all ports of entry to avoid any discrimination because the the previous government had set a land and sea arrival rate at 150 baht.

He said a ministry's study revealed that peope who frequently crossed the border for trade would not be affected by the travel tax as they can use a border pass to be exempt from the levy.

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