THAI GOVERNMENT SUPPORTS ZERO TAX

“Phuket will be a haven for yachts after the zero percent taxes begin," said Director General of the Thai Customs Department, Chavalit Sethameteekul. He explained that his department, together with the Excise Department had proposed changes after Deputy Prime Minister Somkid Jatusripitak had ordered them to review import taxes on yachts at a meeting in July.

Working in close co-operation with the newly-formed Marine Alliance of Thailand (MAT), the Thai Ministry of Tourism and Sport held briefing meetings, prepared discussion documents and arranged seminars to tackle longstanding issues. The new proposals, when enacted, will mean a strong growth curve in Thailand’s marine tourism.

In addition to the zero tax proposal, measures put to the Thai cabinet include extending the length of stay in Thailand for boats to an automatic one year and overhauling the confusing tangle of outdated marine regulations – regulations that have made it difficult for yacht charterers to operate to international standards, and made individual cruising yachties tear their hair out when confronted with unbending officials.

The Harbour Department is in discussion with a MAT sub-committee on the many issues relating to regulating the business of pleasure boating, having received similar requests from central government to tackle the issues.

In a recent statement to the media, Dr Sasithara Pichaichannarong, Thailand’s director general for tourism development, said, “The yachting and marine business has the potential to generate billions of baht for the country,” adding that she would work with other government agencies to make change happen.

This was followed by an announcement from Thailand’s Deputy Prime Minister, Mr Somkid Jatusripitak, that he had asked the Customs Department to come up with a plan to win back yachting business from nearby tax-free Langkawi.

While ‘old Thailand hands’ have been skeptical of whether this is all ‘hot air’, the fact that Prime Minister Thaksin is renowned for making things happen – and happen fast, has most of Phuket’s marine industry experts convinced that this time it will happen.

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