Cabinet Approves Sign Tax Reform With Monthly Billing, 90% Relief

The Cabinet approved the draft amendment to the Sign Tax Act to collect tax according to actual usage period, extend the payment period to 30 days, open online channels, and provide up to 90% tax reduction to assist operators. Government spokeswoman Lalida Perasvianna disclosed that the Cabinet resolved to approve the draft Sign Tax Act (No. ...) B.E. ... as proposed by the Ministry of Interior, to update the 1967 Sign Tax Act to align with current economic conditions and business models. Key changes include adjusting tax collection to be fair for operators who do not install signs throughout the year, extending the tax payment period, adding electronic processing channels, and setting tax relief measures to ease public burden while enhancing local administrative revenue collection efficiency.

Lalida stated the major change is adjusting sign tax collection criteria to match the actual period signs are installed or displayed. For cases where signs are not installed year-round, tax will be calculated monthly, with partial months counted as full months, replacing collection that may have forced operators to bear tax burden exceeding the actual period of sign usage. This creates fairness under the principle "use signs as long as you pay tax for the actual period used," which will reduce burden on operators, especially businesses using advertising signs only during festivals, promotional events, or seasonal operations.

Additionally, the sign tax payment period is extended from 15 to 30 days from the date of assessment notice receipt, giving the public and operators more time to prepare payment. It also allows filing of sign tax returns, refund requests, and appeals through electronic channels, while still permitting in-person processing. Assessment orders and notices can also be issued electronically to increase convenience and reduce bureaucratic steps.

Lalida added the draft law includes tax relief measures during periods when the public and operators are affected by economic situations or special events, allowing ministerial regulations to reduce sign tax as economically and socially necessary, up to a maximum of 90% of tax due. Examples include disasters or events forcing operators to suspend business, along with mechanisms to extend filing deadlines when necessary. Such tax reductions must follow criteria set in ministerial regulations, not automatic reductions for all operators.

Regarding tax rate structure, the draft reduces sign categories from three to two: signs with Thai characters or numerals only, and other sign types, with adjusted rate ceilings to match economic conditions. For example, signs with Thai characters and moving text or numerals set a ceiling of 50 baht per 500 square centimeters, while other cases set 25 baht per 500 square centimeters, up from the previous 10 baht per 500 square centimeters. These are ceiling rate adjustments under the draft law.