What To Know
- Thailand is preparing to introduce a 10 percent import duty on low-cost online purchases valued under 1,500 baht, marking one of the most significant trade policy shifts aimed at strengthening small and medium-sized enterprises.
- Authorities believe the 10 percent rate will not only narrow the price gap but also bring fairness to the marketplace at a time when local producers are fighting rising operational costs, energy expenses, and supply chain pressures.
Bangkok Business News: A New Policy Aimed at Strengthening Domestic Competitiveness
Thailand is preparing to introduce a 10 percent import duty on low-cost online purchases valued under 1,500 baht, marking one of the most significant trade policy shifts aimed at strengthening small and medium-sized enterprises. The move comes amid mounting concerns that cheap foreign goods, particularly from major e-commerce platforms, are undercutting local producers and placing long-term pressure on domestic manufacturing. The policy is now awaiting final cabinet approval and is expected to reshape online shopping dynamics nationwide as this Bangkok Business News report explains.
Thailand introduces a 10 percent duty on low-cost imports to safeguard local SMEs
Image Credit: AI-Generated
A Direct Response to the Surge in Low Priced Imports
Officials say the measure is designed to help level the playing field for Thai SMEs that struggle to compete with mass-produced items flooding into the country without any duty. Currently, low-value imports enter Thailand with a zero-tariff rate, giving foreign sellers a significant price advantage over local businesses. Authorities believe the 10 percent rate will not only narrow the price gap but also bring fairness to the marketplace at a time when local producers are fighting rising operational costs, energy expenses, and supply chain pressures.
Balancing Consumer Costs and SME Survival
While the duty may increase prices for some online shoppers, the government insists it is necessary to ensure sustainable domestic growth. The Ministry of Finance has noted that Thailand’s SME sector employs millions and remains a critical engine of the national economy. The continued influx of extremely cheap imports has forced many small manufacturers and retailers to shut down or operate at minimal margins. By imposing this duty, policymakers hope to stimulate demand for locally produced goods, enhance SME resilience, and encourage buyers to consider Thai-made options.
E Commerce Platforms Expected to Adapt Quickly
Major online marketplaces are expected to adjust their pricing and logistics strategies as the duty takes effect. Some platforms may promote more local sellers, while others could reconsider their import-heavy model. Industry analysts say the duty could also prompt improvements in product quality among Thai SMEs as they regain competitive space and invest more confidently in innovation, branding, and production capacity.
A Strategic Push for Long Term Competitiveness
Although some consumers may initially resist higher prices, the long-term benefits for the nation’s manufacturing base could outweigh the short-term discomfort. Strengthening SMEs is widely seen as vital for economic stability, export diversification, and national self-reliance. The new duty signals a shift toward prioritizing local industries, and its success will depend on enforcement, SME readiness, and continued consumer trust. The policy underscores the government’s belief that sustainable growth requires protecting value-creating sectors while ensuring fair competition, a strategy that could help Thailand navigate global economic volatility and reinforce its domestic foundation.
For the latest on the Thai economy, keep on logging to Bangkok Business News.
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