China has asked Thailand to slash cross-border taxes.
Chinese businessmen have complained that the current rates are unfair.
Chinese entrepreneurs made their demand during a recent
visit to China’s southern Xishuang Banna region by Thai government
officials. The chairman of China’s Chamber of Commerce said Thai
entrepreneurs enjoyed substantial tax concessions, including tax exemption
for imported goods under 3,000 yuan (US$ 362), and a 50 percent tax
reduction on goods over 3,000 yuan. In contrast, Chinese businesses have to
pay customs duties to Thailand at the regular rate.
Thailand also maintained the full tariff rate on Chinese
goods that were showcased at the Economic Quadrangle Expo, held recently in
Thailand’s northern region, where goods from Laos, Myanmar, China and
Thailand were exhibited.
Meanwhile, the director of the Bureau of Supporting
Industries Development, Sanae Niyomthai, said that Thailand has offered
China trade concessions in return for giving Thai entrepreneurs special
privileges. The two countries have slashed taxes on agricultural goods to
zero, as part of the free trade area (FTA) agreement with China. However,
there are concerns that Chinese products might flood the Thai market as a
result of the tax cuts on other items, like electrical appliances.
The association of Thai exporters has proposed that China
finance road construction in Laos. This route would link Bangkok and the
southern Chinese city of Kunming.
Thai exporters have also suggested that the Thai
government negotiate with Myanmar a decrease in the border pass fees on the
Mae Sai-Chiang Thong-Chiang Rung road which connects Thailand with Myanmar,
China and Laos. This would help reduce the cost of transportation. Thailand
and China have also agreed to exchange information on trade to strengthen
bilateral trade ties and cooperation. (TNA)