Finance Ministry defends 1,000-baht departure tax amid backlash

Photo: Kenneth Surillo / Pexels

Thailand's Finance Ministry is defending a planned departure tax of 1,000 baht per person on air travellers leaving the country, Thai and foreign alike. The draft law mentions 5,000 baht, but that is only a legal ceiling. It is a proposal for now, with no start date, and the tourism industry is pushing back hard.

What is being proposed

The Finance Ministry plans a departure tax for people leaving Thailand by air. The draft legislation lists 5,000 baht, but the ministry says that figure is just the upper limit. The rate expected under secondary legislation is 1,000 baht.

The tax would apply equally to Thai and foreign travellers. Thai travellers previously paid a similar 500-baht tax, so this version raises the amount and extends it to everyone.

How you would pay

The tax would be built into airline ticket bookings. You would not pay it separately at the airport. Expect roughly 1,000 baht extra per person on a ticket out of Thailand. Departures by land or sea are not mentioned.

Why the ministry wants it

According to the ministry, the tax would:

  • Ease budget pressure
  • Support tourism recovery
  • Target people who can afford overseas travel

Finance permanent secretary Lavaron Sangsnit has said the tax is aimed at people with the means to travel abroad. He has also stressed that the 5,000-baht figure is only a cap and that the real charge would be 1,000 baht.

Possible insurance link and the entry fee

Some of the money collected from departing foreigners could fund insurance or emergency medical help for international visitors.

The ministry is also weighing whether this tax could replace the separately proposed inbound tourist entry fee, to avoid duplication. That is under consideration and has not been decided.

Who is against it

The pushback is strong:

  • The Tourism Council of Thailand (TCT) has formally objected. It wrote to the finance minister, the tourism and sports minister, and the Revenue Department director-general.
  • The Thai Hotels Association rejected the tax, according to a related headline from two days earlier.
  • AirAsia's CEO warned that an airport fee hike could be a "disaster" for Thai tourism, according to a related headline.
  • A Thai actor questioned a 5,050-baht airport departure tax shown on a flight, according to a related headline.

The TCT's arguments

TCT president Chai Arunanondchai's council argues that the economic damage could outweigh the revenue raised. Its main points:

  • It would raise the cost of international travel, especially for families, overseas students, small-business operators and work travellers.
  • Added to airfares, airport charges, insurance and accommodation, it could lead people to postpone trips, travel less or switch destinations.
  • It could hurt consumer confidence and spending while living costs are high.

What this means for you

  • It is only a proposal. It is not in force, and no start date has been given.
  • Budget for about 1,000 baht extra per person on air tickets out of Thailand if it goes ahead.
  • The rate could be higher. The law allows up to 5,000 baht, and the final amount depends on secondary legislation.
  • The tourist entry fee might be dropped or merged with this tax, but nothing is decided.
  • You might get something back. Part of the money may fund medical or emergency cover for foreign visitors.
  • Expect changes. With industry opposition this strong, the rate or the whole plan could change.

Information sourced from The Thaiger.