Thailand plans to integrate import tariffs on steel and petrochemicals into a new simplified tariff structure for industrial goods by 2007. The Finance Ministry plans to hold talks with producers in both industries about the new tariff rates and the need to reform tariffs to help boost the country's long-term competitiveness. Tariff protection seems to be hurting downstream industries dependent on steel and petrochemical products, though the steel and petrochemical producers have long resisted any changes to the 6-7% import tariffs out of fear of higher price competition from overseas producers. The ministry plans to implement tax cuts for both sectors starting this year with a target of reducing average tariffs to no more than 2%.
The Finance Ministry is also in the process of drafting a new tax structure framework for the next 10 years to be based on economic growth assumptions of 5.5% pa and inflation of 3.5%, and would also consider impending tariff cuts under bilateral and multilateral trade agreements.
16-Feb-06 
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