Bangkok MPs from the People's Party urge the government to advance the Service Establishment Bill to address the problem of monthly extortion payments to 10 agencies and to bring informal money into the formal system.
At 10:00 a.m. on 22 Apr 2026 GMT+7 at the parliament, Mr. Phanthil Nuamchoem, a Bangkok MP from the People's Party, spoke about the amendment to the Service Establishment Act. He said this bill was submitted during the previous session but was halted due to parliament dissolution. He urged the government to include this bill in the current session as public consultations have been completed. Currently, licensing for service establishments faces problems; 80-90% of establishments in Thailand operate illegally, often vulnerable to extortion by officials. Existing definitions in the old law, such as "Ramwong," "Rong Namtcha," are outdated. Today, some coffee shops serve alcoholic beverages until midnight, but operators must obtain multiple licenses, causing confusion. Proper licensing is hindered by zoning issues; for example, many areas in Bangkok lack zoning regulations, leading to unchecked openings. Authority should be decentralized to local administrative organizations to set zoning since they are closer to the people, while the Ministry of Interior cannot oversee all matters. Licensing and fee collection should be the responsibility of local authorities, not central government.
Meanwhile, Mr. Paramet Wityaraksarn, a Bangkok MP from the People's Party, said that nightlife businesses on Khaosan Road and Silom Road have rapidly grown. The key concern is the impact on local residents. The new Service Establishment Bill addresses current societal issues such as operating hours, which currently depend on how lenient officials are. This bill will tighten regulations, including zoning, to ensure businesses cannot evade laws by registering as restaurants selling alcohol when they are actually bars or pubs. This will bring these businesses into the formal system, ensuring they pay proper fees, control noise pollution, and comply with laws, fostering social responsibility.
Mr. Charoeyut Jaturapornprasith, a Bangkok MP from the People's Party, said many tourist spots like Pattaya and Phuket have numerous establishments without licenses that pay monthly extortion to 10 agencies. Bringing these funds into the formal system requires legal backing. The Service Establishment Bill would formalize such money. For example, Khaosan Road has hundreds of shops but only six have licenses. Many businesses operate past legal hours until 3 or 4 a.m., sometimes until morning. Without support for properly licensed businesses, these legitimate businesses cannot survive.