- 26 Oct, 2024
Very recently, the Tourism and Sports Ministry of Thailand announced the imposition of a "Travelling Tax" (previously known as a "landing fee") for foreigners. However, the concerned authority, Minister Sarawong Thienthong, said it still requires Cabinet Approval.
"We are working out the details and will submit them for approval in January of next year. It will start with air passengers, the first phase which will be six months to take effect.”
Once the tax proposal is approved, its implementation is expected to take place within six months. This fee is commonly called "Kha Yeap Pan Din," which refers to the "fee for stepping on Thai Soil."
As per Sarawong, whatever taxes are collected will be used to buy insurance for foreigners, while the remainder will be added to the tourism development fund, and via this, an array of tourist attractions, including building facilities for the disabled, will be developed along with toilets for tourists.
Background
The plan to introduce a "Travelling Tax" was originally discussed in 2019 but was postponed due to the Covid-19 pandemic. Thus, they decided to pass the bill in the cabinet post-COVID pandemic era.
As far as the minister of sports and tourism is concerned, they said that the tourist levy will be imposed only on those who arrive in Thailand by air, however, they aim to extend the levy to travelers crossing the border by land or other medium of transport.
Dedicated Ministry Claims
The Tourism and Sports Ministry of Thailand said it is developing an application that will help it collect the tax and be linked to the Krungthai Bank system.
Further, the minister said that the money would be used to purchase insurance for foreigners, and the current insurance coverage amount would remain the same (Not more than 60 Baht from the 300 baht/person traveling tax).
The Minister, Sarawong, said that in the first phase, the Cabinet will consider adjusting the tax for arrivals via land and sea channels, and they will be the same for air travelers to avoid accusations of any tax collection disparity or unequal treatment.
Sorawag added that the traveling tax would not be imposed on cross-border merchants, who are required to present the border pass when crossing to and from neighboring countries.
Based on a statement of the ministry, the new system or taxes will be similar to the South Korean Program or K-ETA- electronic entry permit. Thus, all the fees has to be paid in advance or through an online service, which is also on its way to be implemented.
Coverage under Insurance
The current Insurance payout for the decedent is set at one million bhat, whereas for injuries, it is 500,000 baht. Not only this, it will also provide accommodation or stay in Thailand for no more than 30 days and this coverage is applicable on almost or around 87% of total foreign arrivals.
The given amount goes on top of the insurance that foreign travelers purchase on their own. However, remember that this insurance package does not provide the validity of the already purchased International insurance policy.
