Thailand scrapping tax luxury goods Lure China travelers
The Thai government said it would abolish the import of luxury watches ,Prada Knitted Caps clothes and cosmetics to assist the country to compete with Hong Kong and Singapore for wealthy travelers markets such as China .
Duties on certain luxury goods from 30 percent to zero is reduced by the end of the year , the Secretary for Finance Areepong Bhoocha - uncle told reporters in the province of Chonburi . The Thailand SET index jumped by 3.6 percent as a minor (MINT ) International Pcl led gains among tourism -related stocks on optimism the tax reduction will stimulate travel demand.
The government expects tourist numbers to increase 18 percent to 26.4 million this year , helping a decline in exports and domestic consumption , the effect that the economy may grow as little as 3 counter , 8 percent. The Thailand Tourism and Services industry accounts for 50 percent of gross domestic product.
"We'll make it quick , because we contribute to the economy this year will," Somchai Sujjapongse , head of the Office of Tax Policy of the Ministry of Finance, said today by phone . " In addition to the purchase of luxury goods , they will also buy local products. We also hope that the rich Thais will buy luxury goods in Thailand instead of flying to Europe for shopping " .
Shares of hotel operator Minor rose 10 percent, the biggest increase since the fourth May the Central Plaza Hotel ( Prada Caps Scarves ) Pcl rose 6.5 percent and Thai Airways International PCL ( THAI ) rose 7.7 percent , the highest since October 2011.
" Strong gains "
"Reducing the tax on luxury goods would add a new catalyst for the tourism industry of Thailand " Itphong Saengtubtim , director of research at KGI Securities (Thailand ) PCL Bangkok, said by telephone today 'hui . " The tourism companies do not have outlook on strong profits growth in the number of foreign visitors has been affected by the global economic crisis. "
Chinese tourists , the $ 105 billion abroad in 2012 , is expected to make 94 million trips this year , almost double the 2009 level , according to the China Tourism Academy .
Arrivals to Thailand rose by 16 percent to 22.4 million last year, according to the government . The number of Chinese visitors jumped 62 percent to 2.8 million .
Singapore attracted 14.4 million visitors last year , according to preliminary government figures . Arrivals from China rose 23 percent to 1.5 million in the first nine months of last year , according to recent data . The Singapore government expects arrivals to rise as much as 15.5 million this year.
cost reduction
"We can compete with Hong Kong and Singapore ," Tos Chirathivat , CEO of Central Retail Corp. , said today in an interview. " Our infrastructure , our sales are equal to or more . We have more . , The service is good. , The rental cost is low and the cost of labor is lower. "
Thailand initially reduce import duties on certain luxury goods between zero and 5 percent, 30 percent , said Somchai Finance. The government will discuss the plan with local retailers to ensure that they are not affected by the measure , he said.
"We may lose a portion of the proceeds from the tax cut , but I do not think it much," Somchai said. "We will turn more of VAT and other taxes . " Thailand imposes a tax of 7 percent on goods and services at the same level as the goods and services tax in Singapore .
Deputy Finance Minister Benjamin Louichareon said today that the department over the tax cut will hurt local producers concerned , must be carefully examined .
"We have the numbers of the Department of Revenue , how much is the VAT refund for tourists buy to see products in Thailand," she told reporters . "If that's a lot , it is not necessary to promote action."
Somchai said visitors from China is an important goal of the plan to reduce the import duties.
" Thailand is in the middle ," said Tos Central Retail . "If we look at India, China , Hong Kong, Singapore, whatever, within three to six hours of flight , people can easily come for the weekend. Prada bag "