BANGKOK (Reuters) – Thailand expects to introduce a value-added-tax on electronic businesses next year, aiming to collect between 3 billion to 4 billion baht ($98 million to $131 million) a year, an official said on Monday, tapping a boom in e-commerce in the country.
The tax is expected to seek parliamentary approval this year, Ekniti Nitithanprapas, director-general of the Revenue Department, told reporters, without elaborating.
E-commerce is surging in Thailand where entrepreneurs sell products directly to customers via Facebook (NASDAQ:), Instagram and messaging apps like Japan’s Line Corp (T:).
Driven by upgrades to mobile banking apps, sales via social media in Thailand more than doubled to 334.2 billion baht ($10.92 billion) in 2017, according to the latest report from the country’s Electronic Transaction Development Agency.
Ekniti said the government is targeting overall tax revenue of 2 trillion baht in the current fiscal year to Sept. 30, and rising to 2.116 trillion baht in the next fiscal year.
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