Thailand Collects 4 Billion Baht in First-Baht Online Import Tax
Thailand's first-baht import tax, which eliminated exemptions for goods under 1,500 baht starting January 2025, has generated over 4 billion baht in duties while leveling the playing field for domestic retailers competing against low-value
Deputy Government Spokesperson Lalida Perisvilwattana announced that the government is monitoring results from the first-baht import tax measure, which took effect on January 1, 2025, after scrapping the previous exemption for goods valued under 1,500 baht. The policy was designed to bring low-value imports into the tax system, reduce foreign sellers' tax advantage, and create fairer competition for Thai businesses.
The Customs Department reported that during the first 11 months of fiscal 2025, approximately 225 million items valued at around 41 billion baht were imported under the measure, generating over 4 billion baht in import duties. Small-scale foreign purchases have declined, and consumers are increasingly buying from domestic retailers holding local stock.
Perisvilwattana said the measure's goal extends beyond revenue generation to address tax inequality, as Thai manufacturers and traders bear tax and compliance costs while some low-value online imports previously faced no duties. "Imported goods can compete on price, but they must compete under the same tax rules," she said. "First-baht taxation is not just about 4 billion baht in revenue—it closes the gap that disadvantaged Thai businesses and creates fair competition."
The government is also cracking down on misuse of Made in Thailand designations. The Customs Department is coordinating with the Department of Foreign Trade to verify products claiming Thai manufacturing status, preventing abuse of Thailand as a workaround for trading partners' protectionist measures and safeguarding the reputation of genuine Thai products.
Perisvilwattana clarified that paying import duties does not mean goods meet safety standards—consumers should verify sellers, labels, warnings, guarantees, and legal safety marks before buying online. She noted that the 225 million items figure represents goods subject to the collection system, not illegal goods, and the 4 billion baht refers only to import duties recorded by Customs, not total value-added tax or revenue from specific countries.
