Proposed B1,000 Thailand departure tax would affect Phuket air travellers

Thailand’s Revenue Department is consulting on a proposed B1,000 departure tax for every air departure, a measure that would also apply to passengers flying out of Phuket if approved.

The consultation on the draft Departure Tax Act opened on 30 September and will run until 29 October. The proposed system would apply to all nationalities, replacing a 1983 arrangement covering Thai nationals and resident foreigners. Air departures would be charged first, with a legal ceiling of B5,000.

Land and sea departures would initially be exempt. Children aged two or under, transit passengers remaining airside and crew on duty would also be excluded. Airlines would collect the tax with ticket payments.

The measure would take effect 180 days after any notice was published in the Royal Gazette. Tickets purchased before that date would not be subject to the charge.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas defended the proposal on 7 October, saying an outbound travel charge could encourage Thai residents to holiday domestically and keep spending in the country.

The Association of Thai Travel Agents opposed the proposal. Secretary-general Adith Chairattananon said foreign visitors already pay Airports of Thailand an international passenger service charge of B1,120, which was raised in June, and could later face a separate B450 entry fee.

Based on those figures, the association put the combined cost for a foreign air passenger at about B2,570, including the proposed departure tax and entry fee. For a Thai passenger paying the airport charge and the new tax, it estimated the total at about B2,000. The association said the additional charges were uncoordinated and could damage Thailand’s competitiveness. Its board was due to discuss the draft on 8 October, and the group was preparing a letter to the Finance Ministry.

The proposed B450 foreign entry fee has not yet been approved. A consultation held from 24 August to 28 September received 5,954 responses, with 80.5% supporting the draft and 78.3% supporting the proposed rate. The fee still requires consideration by the National Tourism Policy Committee and the Cabinet, followed by publication in the Royal Gazette before collection can begin.

Reaction from foreign commenters on Thai news posts was largely negative, according to the report. Some described the proposed entry and exit charges as an additional burden for visitors and residents, while a minority argued that B1,000 was comparable with departure charges in other countries and could be included in ticket prices.

Formal comments on the departure-tax proposal remain open through the Revenue Department’s consultation process until 29 October.