"Importing goods from abroad will be taxed from the very first baht, starting 1 Jan 2026." ,
As the government prepares to collect taxes on imported goods, many worry about potential impacts on consumers. Thairath Money had the opportunity to speak with Phanthong Loikulanun, Director-General of the Customs Department, who shared the background and reasons behind implementing this measure from 1 Jan 2026.
Phanthong explained that many countries, including Thailand, set a minimum value threshold below which import taxes are exempt. For example, Thailand exempts goods valued up to 1,500 baht, while other countries may set thresholds at 30 US dollars, 30 euros, etc.
Originally, international shipments were for personal gifts, not online sales as today, which have surged to hundreds of millions of items worth tens of billions of baht annually. More importantly, the flood of foreign goods into the domestic market has made competition difficult for SME producers, a problem seen worldwide.
This has led many countries, including the US and now Thailand, to lower or remove import tax exemptions. Thailand will start taxing imports from the first baht, effective 1 Jan 2026, following a related policy from July 2024 that imposed a 7% VAT on all imported parcels.
The government aims to create fairness for SMEs and domestic sellers who face higher costs—not only import taxes but also corporate taxes—unlike foreign sellers who pay no additional fees in Thailand. When consumers order online, goods ship directly to their homes without tax, creating an uneven playing field.
How much additional tax revenue will the government gain by taxing imports from the first baht? Phanthong answered that last year (2024), imports valued under 1,500 baht totaled over 30 billion baht. Assuming an average tax rate of 10% (with rates ranging from 5-20% depending on product type), this would generate approximately 3 billion baht in additional revenue.
This will likely improve competitiveness for Thai SMEs in both manufacturing and retail sectors. Since foreign goods will have higher costs due to import taxes, their prices will be closer to those of Thai products. The Customs Department has sought cooperation from online sales platforms, which have reported no issues with this policy.
, Impact on "consumers" Phanthong said there may be some initial confusion, but assured that the purchasing process from order to home delivery will remain the same. While prices displayed on apps may rise, consumers will not need to handle tax payments themselves. In practice, Customs will collect taxes from importers (including logistics providers) when goods arrive in Thailand. Platforms will factor these costs into upfront prices to cover tax payments. "Prices shown on websites may increase, bringing domestic sellers' prices closer to foreign goods. Consumers may then choose to buy from local platforms rather than waiting for cheaper foreign products, since prices will be comparable," Phanthong explained.
After 1 Jan 2026, import rules will change, but consumers need not worry as goods will still be delivered home as usual. The main change is a pricing mechanism that better reflects true costs. Phanthong encouraged Thai consumers to support local products and businesses, noting that despite sometimes lower prices for foreign goods, Thai products maintain quality and standards. Importantly, this policy aims to ensure fairness for Thai SMEs.
"People may question that prices will rise because goods should have been taxed anyway. If goods enter our country, they must pay our taxes. This creates fairness for domestic sellers," he added. "If you worry that imported goods will cost more, remember that the extra revenue goes to the government to develop the nation."
[Link: https://youtu.be/zSgWqhrqls0?si=Y7UNv_El4aKdfFyJ]
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