Thailand to Suspend Arrival Duty-Free Shops to Boost Domestic Spending

Duty-Free shops

BANGKOKThe Cabinet meeting on July 2 acknowledged the approach to promote Thailand as a center for tourism and spending, as proposed by the Ministry of Finance. This includes suspending the use of tax benefits for bonded warehouses for arrival duty-free shops at the international airports

Based on the current situation assessment, travelers entering the Kingdom through international airports can purchase duty-free goods up to 20,000 baht in total value. This has led to decreased domestic consumption and shopping.

The Ministry of Finance is considering the appropriateness of revoking permits for establishing bonded warehouses for arrival duty-free shops, including the duty exemption for goods purchased from these shops.

This aims to promote domestic consumption and circulation of goods within the country, enhancing economic efficiency and added value.


Currently, there are three legal entities authorized to establish arrival duty-free shops in 8 international airports nationwide, with total sales of 3 billion baht ($81.5 million). All three entities are willing to suspend the use of tax benefits for arrival duty-free shops in line with government policy until the policy is revoked.


The benefits and impacts of suspending arrival duty-free shops for one year are expected to increase foreign tourists’ spending in the country by an average of 570 baht ($15.5) per person per trip.

Simultaneously, this change is expected to result in new circulating funds of up to 3,460 million baht ($94 million) per year for general retailers and tourism-related businesses, creating opportunities and positively impacting production, investment, and employment.

For government revenue, money will circulate more widely among retailers, expanding the tax base and value-added tax collection. It’s estimated that this will lead to a 0.012% annual increase in Gross Domestic Product.