“Purchasing imported goods will be subject to import tax from the very first baht, starting 1 Jan 2026.”,
As the government prepares to impose import taxes on foreign goods, many worry about the impact on consumers. Thairath Money had the opportunity to speak with Phanthong Loykulnan, Director-General of the Customs Department, who shared the background and reasons for implementing this measure starting 1 Jan 2026.
Phanthong explained that many countries, including Thailand, have set minimum value thresholds below which import taxes are not collected. For example, Thailand exempts goods valued under 1,500 baht, while some countries set the limit at 30 US dollars, 30 euros, etc.
Originally, international shipments were often gifts or personal items, not online purchases as today, which number in the hundreds of millions annually, worth tens of billions of baht. More importantly, the flood of foreign goods into the domestic market makes competition difficult for local SMEs—an issue faced worldwide.
This has prompted many countries to lower or remove the import tax exemption threshold, including the US and Thailand, which will begin taxing imports from the first baht, effective 1 Jan 2026. This continues after Thailand introduced a 7% VAT on all imported parcels starting July 2024.
The government’s rationale centers on creating fairness for SMEs and domestic sellers, who often face higher costs, including import taxes and corporate taxes for manufacturers, unlike foreign sellers who pay no additional costs in Thailand. Online buyers receive goods directly without paying tax, which creates an uneven playing field.
How much additional tax revenue will the government gain from this policy? Phanthong responded that last year (2024), imports valued under 1,500 baht totaled over 30 billion baht. Assuming an average tax rate of 10% (tax rates vary from 5% to 20% depending on product type), this translates to roughly 3 billion baht in additional tax revenue.
This policy could improve competitiveness for Thai SMEs in manufacturing and retail. Foreign goods will have higher costs closer to Thai products because of added taxes. The Customs Department has coordinated with online selling platforms, which have not reported any issues.
, Impact on "consumers" Phanthong said that initially there may be some confusion, but assured that the process from purchase to delivery will remain the same. Prices displayed on apps may rise, but consumers will not have to handle tax payments themselves. In practice, Customs will collect taxes from importers (including shipping receivers) upon arrival in Thailand. Platforms will factor these costs into retail prices upfront to cover tax payments. "Prices on websites may rise, aligning domestic sellers’ prices closer to those of foreign products. Consumers might compare, for example, platform L with domestic products and platform S with foreign goods. Previously, foreign goods were cheaper and worth waiting for, but now with prices equalizing, consumers may prefer buying domestically," Phanthong said.
After 1 Jan 2026, import rules will change. Phanthong said consumers need not worry as home delivery remains unchanged. The key change is that pricing will better reflect actual costs. He encourages Thais to support local products and businesses, as Thai goods still have advantages in quality and standards. Importantly, the policy aims to create fairness for Thai SMEs.
“People may ask why prices rise. It’s because goods should rightfully be taxed when consumed in our country. This policy ensures fairness for domestic sellers,” he added. “If prices of imported goods increase, the additional revenue benefits the government for national development.”
[ Link: https://youtu.be/zSgWqhrqls0?si=Y7UNv_El4aKdfFyJ ]
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