The new government is urged to adjust import taxes on luxury goods to align with neighboring countries, with the goal to attract international tourists and strengthen the competitiveness of Thai SME brands against prevalent foreign brands in the nation.
Yol Phokasub, the leader of the Thai Retailers Association (TRA) and the CEO of Central Retail Corporation (CRC), said that a reassessment of import tax on luxurious items is crucial to align with the norms in neighbouring nations.
A lack of such alignment might restrain the nation from leveraging the rebound in tourism to its fullest potential, he conveyed.
Mr Yol feels that the government’s newly declared short-term economic reviving strategies seem to be on the proper course. However, the immediacy of their effects and the pace at which they meet their objectives are contingent upon the government’s adept implementation.
Given the substantial contribution of local consumption to GDP growth, Mr Yol emphasized the necessity to segment the economic revival initiatives into two categories.
First, sustaining the expenditure levels of high-expenditure consumer segments through incentives. Second, aiding lower spending power consumers by alleviating their cost of living, with digital wallets being a feasible alternative, he noted.
For the swift accomplishment of the digital wallet strategy, collaborative dialogues between the government and private sectors are essential.
Effective execution of this strategy holds the capacity to augment economic activity by enhancing the monetary circulation by three to five times, he highlighted.
Acknowledging the profound impact of foreign brands on Thai SME brands, Mr Yol advised the government to initiate measures to reinforce and elevate national SME brands.
He highlighted that the majority of the retail and service domains are sustained by SMEs. The stagnation in these sectors can be detrimental to the cumulative economic progression, he added.
With the inflow of international tourists to Thailand escalating, Mr Yol emphasized the importance of governmental initiatives to stimulate more diversified spending by these tourists beyond just travel.
He expressed optimism that the government’s newly-sanctioned initiatives to invigorate consumer spending can potentially amplify consumer spending power twofold in the coming 6-7 months, contingent upon earnest implementation of the newly proclaimed policies.
He applauded the government’s initiatives to boost tourism, especially in Phuket, but urged the authorities to elevate Phuket to a duty-free status.
