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Thailand's Finance Ministry is considering bringing back a tax on international air departures, first introduced in 1983. The initial rate would be 1,000 baht per departure, added to the airline ticket and capped at 5,000 baht. Leaving by land or sea would be exempt. The ministry estimates it would raise about 12 billion baht a year. This is still a proposal: no effective date has been given, and the final rate would be set by a regulation issued after the law takes effect.
What is being proposed
The Finance Ministry is looking at reviving a tax on international air departures. The original levy dates from 1983, more than four decades ago. It is one of 10 tax measures in the ministry's pipeline.
The tax would apply to travellers of every nationality leaving Thailand. The only carve-out among travellers is for transport workers who travel abroad for their jobs without paying a fare.
Why now
The main driver is revenue. Budget deficits have persisted for decades, and public debt is approaching the statutory ceiling of 70% of GDP.
The 1983 version was introduced under Prem Tinsulanonda's government. Its aim was to curb excessive outflows of foreign currency and protect the balance of payments.
How much would it cost
The 1983 law capped the tax at 5,000 baht per departure. A later ministerial regulation set the effective rates at 1,000 baht by air and 500 baht by sea or land.
The revived version would work like this:
- The ministry says the initial rate would be 1,000 baht per departure, set by a ministerial regulation issued after the law takes effect.
- For air travel, the tax would be added to the airline ticket, with a maximum of 5,000 baht per departure.
- Exits by land and sea would be exempt.
- The tax would not apply to tickets bought before the law takes effect, even if the flight departs after that date.
Foreign residents
Foreigners living in Thailand would still pay. The ministry's reasoning is that anyone who chooses to live here and uses the infrastructure like Thais should pay the same taxes.
Who is exempt
The exemptions are similar to those for the passenger service charge:
1. The King, the Queen, Royal Family members specified by law, and the Royal Entourage. 2. The Supreme Patriarch and members of his entourage. 3. Foreign heads of state and their accompanying parties. 4. Official guests of the King or Queen, and their parties. 5. Official guests of the government, and their parties. 6. Children aged 2 or younger. 7. Teams of the Organisation for the Prohibition of Chemical Weapons.
What this means for tourists
- Tourists leaving by air would likely pay about 1,000 baht per trip. It would show up as an added line on the ticket, and the cap is 5,000 baht.
- Leaving by land or sea (for example, to Malaysia) would be exempt.
- Infants and toddlers aged 2 or younger are exempt.
- Tickets bought before the law takes effect should be exempt, so early bookers would be protected.
- Long-term foreign residents would pay too, so there is no resident discount.
- This is still a proposal. The final rate would only be fixed in a regulation issued after the law passes, and no effective date is given.
The wider tax package
The departure tax is one of 10 tax measures in the ministry's pipeline. Two are already in force:
- The import duty exemption for goods worth under 1,500 baht has been removed.
- A top-up tax now applies to multinational enterprises with annual revenue of at least €750 million (about 26.8 billion baht), for accounting periods starting on or after 1 Jan 2025. It makes sure these companies pay a minimum level of corporate income tax, and it aligns with the OECD-led global minimum tax.
Other planned measures:
- Restructuring personal income tax by reviewing deductions, expected to raise about 50 billion baht.
- Raising VAT from 7% to 10%, expected to raise about 345 billion baht.
Information sourced from Bangkok Post.