Thai government urged to tighten oversight on e-commerce

The government of Thailand is intensifying its oversight of foreign e-commerce platforms, with Prime Minister Srettha Thavisin instructing the Revenue Department and the Ministry of Digital Economy and Society to ensure that the Chinese online retailer Temu adheres to Thai laws and tax regulations.

This comes amid concerns from local businesses about the potential market disruption caused by the influx of low-priced Chinese goods, especially those offered by Temu with discounts as steep as 90%.

According to the PM, all companies operating within Thailand, including foreign e-commerce giants, are required to comply with the country's tax obligations. The government's focus is on safeguarding local small and medium-sized enterprises (SMEs) from unfair competition. In response to these challenges, discussions are underway to implement stricter import controls and potentially introduce a value-added tax on imported goods priced below 1,500 baht to level the playing field for Thai businesses.

Thai E-commerce Association Honorary President Pawoot Pongvitayapanu also voiced concerns on the issue, urging the government to take decisive action against illegal cross-border products to protect the interests of Thai SMEs as they navigate the challenges of a rapidly evolving digital marketplace.