BANGKOK – In a decisive move to level the playing field for local businesses, Thailand’s Customs Department has announced it will eliminate the tax exemption for low-value online imports starting January 1, 2026. The new policy mandates that all foreign goods sold online will be subject to import duty if their value exceeds one baht, effectively ending the current 1,500-baht duty-free threshold.

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Customs Department Director-general Panthong Loikulnan stated that the change addresses a significant market imbalance, noting that foreign goods imported through online platforms and priced below 1,500 baht exceed 30 billion baht annually. He emphasized that the current exemption gives foreign products an unfair advantage over Thai businesses, particularly small and medium-sized enterprises (SMEs) that are required to pay taxes. The new duty, combined with the existing 7% Value Added Tax, is projected to generate at least three billion baht in annual revenue for the government.

🚨 Thailand’s new tax law hits online imports from Jan 1, 2026! Duties + 7% VAT on all foreign goods over 1 baht – goodbye to the 1500 baht exemption. Expect 10-30% price hikes on sites like Lazada & Shopee to protect local biz. Govt eyes 3B baht revenue. #ThailandTax… pic.twitter.com/dTcI8S7zaF

— Nirah Group (@nirah_digital) November 7, 2025

The implementation will rely heavily on data from major e-commerce platforms. The Customs Department is expediting negotiations with companies like Shopee and Lazada to directly integrate sales and import data for efficient tax collection, supplementing the digital verification process with random physical inspections. Director-general Panthong highlighted the global context for this shift, pointing out that numerous countries, including the United States, have already scrapped their de minimis thresholds to prevent tax evasion and protect domestic markets.

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For the long term, officials are considering a further simplification of the tax process through a “lump-sum tax” that would apply a flat rate of 20-30% on all imported goods, though this would require legal amendments. The department confirmed that the new 2026 policy complies with all existing international trade agreements, including Free Trade Area (FTA) commitments, and aligns with similar recalibrations of import duties being undertaken by other major economies worldwide.

-Thailand News (TN)