Thailand floats idea of B1,000 air departure tax

The Revenue Department is seeking public input on a draft law that would require travellers of all nationalities flying out of Thailand to pay a departure tax of 1,000 baht per trip.

The fee would be in addition to the 1,120-baht airport passenger service charge that is already included in the price of tickets for international flights.

Under the proposed Departure Tax Act, the new levy would apply to all nationalities, both Thais and foreigners, leaving the country. Air travel would be taxed at 1,000 baht per trip, while travel by land and water would be exempt. The tax would be capped at 5,000 baht per trip.

Airlines or ticket agents would collect the tax together with the fare before departure. Those who violate the rules or evade the tax would face a penalty of up to twice the taxed amount, plus a surcharge of 1.5% per month.

The Revenue Department said the tax is meant to help manage existing resources for maximum benefit while ensuring fiscal discipline, and to give the government more flexibility to deal with emergencies.

Thailand previously levied a departure tax on Thai nationals and resident foreigners in 1983 in order to prevent foreign currency from leaving the country. It was rescinded in July 1991.

The online public hearing runs until Oct 29, and comments can be submitted at law.go.th. It remains to be seen whether the tax will be introduced.