New online sales tax: 5% to 15% of price

3/07/2017
Suchit Leesa-nguansuk
When you buy things online you will soon have to also pay an additional tax of 5% to 15%
making everything you buy a lot more expensive.
This could have a big impact on online business and whether people choose to buy things
online.
Or maybe it will not, if purchases are not accurately reported to the government.

If they don't the Bank of Thailand (BoT) has a detailed list of all money transfers that can
be used to monitor transactions, though this does seem like a massive and difficult
technological undertaking.
PRICE INCREASE OF 5% TO 15% FOR EVERYTHING BOUGHT ONLINE
Changes to the withholding tax for e-commerce transactions announced by the Revenue
Department -- from a flat rate of 5% to a range of up 15% -- will have a big impact on
online business, say traders.
But the effects on online services, digital advertising for instance, may be less because
digital ad agencies and social media giants can afford the tax.
STEP BACKWARD: COULD PUSH COMMERCE OFFLINE BACK INTO
PHYSICAL STORES

"It will push merchants and buyers back to traditional modes and also create a
bigger tax document burden for merchants," said Nattawut Polwattanasulk co-founder of
LNW shop, a local e-marketplace housing 520,000 merchants.

Each product list has a different margin. Even at 5%, merchants could experience losses, he
said.
FIRST FOR ONLINE TRANSACTIONS WITH FOREIGN COMPANIES
The e-commerce tax will also be applied to foreign companies that so far have never
paid tax to the country, helping the government generate extra revenue.
This is according to Pawoot Pongvitayapanu, president of the Thai e-commerceAssociation.
COMPLEXITIES OF HOW IT WOULD ALL WORK

Mr Pawoot did not comment much on the potential rate change.

He did say that he agrees with the tax collection, however "the tax should not be
a burden for consumers," he said.
Since consumers have to pay more for the things they buy, however, all taxes are
by definition "burdens" for consumers.
THE CHALLENGE OF COLLECTING ONLINE TAXES
From a practical standpoint of collecting the new online tax he has no idea how the
government will accomplish this.

E-commerce taxation will be feasible, perhaps, if the government offers incentives for
online buyers and centralises the e-receipt system that is used to keep records of purchases
(receipts). .
Faulty measures could slow down the growth of the e-commerce ecosystem and lead to
unfair competition between those who evade taxes and those who pay taxcorrectly...
HARD TO IDENTIFY TAXABLE ONLINE TRANSACTIONS

"Today, it is very hard to clarify exactly when business deals transpire, as sellers
can claim that the transactions are personal matters, not trade," one executive said.

The government needs to encourage online merchants to enter the tax system.
Two measures in particular are needed, said an e-commerce marketplace veteran.

First, the government needs to prepare a centralised system of e-receipts. Similar to South
Korea, the system would enable merchants to automatically inform the government
when tax is paid. The system would help improve efficiency of e-commerce taxation and
also support small online merchants, in line with the government's digital economy policy.

Second, a request for tax invoices should be made simple. "Thirteen digits for ID cards
is sufficient for tax invoice referencing," the veteran said.
DIFFICULT TO TRACE TRANSACTIONS TO SOCIAL MEDIA COMPANIES
Foreign social media companies such as Facebook, Google and Line that have subsidiaries in
Thailand will be obliged to pay tax.

But the problem for e-commerce tax collection is that it is rather difficult to trace all income
from transactions among the social media companies and Thai individuals in Thailand,
since Thai people and/or entrepreneurs always pay advertising fees via credit card and
electronic fund transfers.
This is according to Paiboon Amonpinyokeat, founder and legal counsellor of P&P Law
Firm.

MONITORING BANK OF THAILAND MONEY TRANSFER RECORDS

Since all transaction records and fund transfers are recorded by the Bank of Thailand,
the Revenue Department should collaborate with the central bank in tracing
online transactions, said Mr Paiboon.

But a fintech firm source who asked not to be named said it would be prudent for foreign
firms to pay tax, particularly a withholding tax, as they earn revenue locally.

http://www.bangkokpost.com/business/news/1279907/traders-troubled-by-shake-up-in-levy
Vocabulary:
accomplish: to achieve something -
ad agency: a company that does ads for other companies -

additional: more; more than was first mentioned or is usual -
advertising: telling the public about a product or a service, political candidate, etc. in order to
encourage people to buy, use or support it -
announce: to tell people something officially, especially about a decision, plans, etc - , ,

association: an official group of people who have joined together for a particular purpose -
automatically: when a machine does something by itself without needing a humaN to operate it and
make decisions; self-operating, automated - ,
burden: a serious or difficult responsibility that you have to deal with -
centralised (adj.): controlled from the center -
claim (noun): saying that something is true although it has not been proved and other people may
not believe it -
clarify: to make clear -
co-founder: a person who works with another to establish an institution, business or organisation -
correctly: to make something right or accurate by changing it or removing mistakes -
definition: what an idea, etc. means - ,
detailed: giving many details and a lot of information; paying great attention to details -

e-commerce (noun): business that is conducted on the Internet - ( )

ecosystem (noun): all the different activities, companies, systems etc that are involved in a particular
area of business, especially new technology -
effect: a change that somebody/something causes in somebody/something else; a result -
efficiency: the ability to work well and produce good results by using the available time, money,
supplies etc in the most effective way -
encourage: to make someone more likely to do something, or to make something more likely to
happen -

evade: to avoid or escape from someone or something -
executive: a senior manager in a business or other organisation -

faulty: not perfectly made or not working correctly -

feasible: that is possible and likely to be achieved -
flat rate: a single price for a service -
for instance: for example -
growth (noun): economic growth, an increase in economic activity -
has no idea: does not know anything about this -
impact (noun): an effect or influence -
improper: not suited or appropriate to the situation -

improve: to make better -
in line with: following a rule or system; also in accordance with and consistent with -
in particular: especially or particularly - ,
incentive: something that makes you want to do something or work harder, because you know that

you will benefit by doing this -
inform: to tell somebody about something, especially in an official way -
invoice: a document giving details of goods or services that someone has bought and must pay for -

massive: very large in size, amount or number -
,
matter: a situation or subject which is being dealt with or considered - ,
measures (noun): actions taken to solve a particular problem -
merchant: a person or business that buys and sells goods, especially one that trades with other
countries - , ,
 mode: a particular way of doing something; a particular type of something - ,

monitor: keep track of - , ,
obliged: required to do something -
policy (noun): a set of plans or action agreed on by a government, political party, business, or other
group -

potential: possible in the future -

practical: suitable for the situation in which something is used -
range: to have an upper and a lower limit in amount, number, etc -
rate: an amount of money that is paid or charged - ,
record: a written account of something that is kept so that it can be looked at and used in the future -
,
Revenue Department: the government department responsible for collecting taxes -
social media: the use of web-based and mobile technologies to turn communication into an
interactive dialogue, e.g., Facebook, Twitter, etc. -
standpoint: way of looking at things; viewpoint; perspective -
sufficient: enough -
tax: money that you have to pay to the government so that it can pay for public services -
taxation (noun): the system/process of collection taxes from the people -
trade: a type of business -
trader: someone who buys and sells things -
traditional (adj): of a custom, a way of life or a way of doing things that has not changed for a long

time - , ,


transaction: a business dealing -
transfer: to officially arrange for someone else to receive money or be the owner of something -
transpire: to happen -
undertaking: something difficult that you do -
veteran: a person who has a lot of experience in a particular area or activity - .),
(.), ,
withhold: to deliberately not give something to someone - ,
withholding tax: part of a person's salary or payment that an employer gives to the government as
;
payment of that person's taxes -

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LEARNING > LEARNING FROM NEWS > ADVANCED NEWS

Today you need to be 20 to buy

cigarettes
4 Jul 2017 at 09:36 1,037 viewed0 comments
WRITER: TERRY FREDRICKSON
ORIGINAL SOURCE/WRITER: POST REPORTERS
Level switch:
1. Advanced

A sign is put up at the entrance to Wat Samian Naree in Bangkok to designate a

space for smokers as the latest amendment to the tobacco control law goes into
effect. (Photo by Wichan Charoenkiatpakul)
A toughened tobacco control law takes effect Tuesday, raising the legal age to buy cigarettes
to 20.

Please join us on our Facebook page http://www.facebook.com/bangkokpostlearning

Cigarette buying age raised to 20

Post Reporters

A toughened tobacco control law takes effect Tuesday, raising the legal age to buy
cigarettes to 20 and barring tobacco firms from indirect advertisements via corporate
social responsibility (CSR) activities.

Welcoming the amended law regulating tobacco consumption, Public Health

MinisterPiyasakol Sakolsatayadorn said yesterday the 2017 Tobacco Control Act was
designed to cut the number of teenage smokers while protecting non-smokers' health.

The stricter law was necessary to keep children from picking up the habit because
tobacco firms had come up with sophisticated marketing strategies to entice young
smokers, he said.

Once they have picked up the habit, smokers are at risk of being addicted to tobacco for
life, he said.

Dr Piyasakol said the amended law was also intended to protect the health of non-smokers.

He said tobacco consumption poses major health problems and is a leading cause of illnesses
and premature deaths, adding that over 50,000 people die yearly due tosmoking-induced
illnesses incurring economic losses estimated at 74.8 billion baht.

It is hoped the 2017 law will close loopholes in the 1992 Tobacco Products Control Act
which was in place for 25 years, director-general of the Department of Disease Control Dr
Jedsada Chokdamrongsuk said.

He said the amended version has introduced several elements the public need to know
about to ensure compliance or they will be subject to legal action.
Under the law, the minimum legal age for buying cigarettes is raised to 20 while
the minimum legal age for selling tobacco is 18.

The sale of tobacco is prohibited in temples or religious venues; hospitals, medicalfacilities

and pharmacies; education institutes; and public parks, amusement parks and zoos.

He said the law bans the promotion of tobacco items,

including indirectadvertisements carried out in the name of corporate social responsibility
activities.

People who light up in smoke-free areas will be fined 5,000 baht and those
who supervise non-smoking areas are required to keep people informed of
the restrictionsand make sure there are no violations or they face a 3,000-baht fine.
Learn from listening
Click "play" to listen to Today you need to be 20 to buy cigarettes and "Download" to keep this file for
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Vocabulary:

addicted: unable to stop using or doing something -
advertisement (noun): advert; a short piece of video or words with pictures that makes people
interesting in buying some product -
amended (adj): (of a law, document, agreement, etc.) having been change, especially in order to

improve it -
amusement park: a large park which has a lot of things that you can ride and play on and many
different activities to enjoy -

at risk: in danger -
ban: to officially say that someone is not allowed to do something -
barring: not allowing someone to do something or go somewhere -

come up with: to suggest or think of an idea or plan -
compliance: the practice of obeying a law, rule, or request -
consumption: using, eating or drinking something -
CSR (noun): Corporate social responsibility; efforts by companies to help their communities or repair
any environmental damage they may cause that go beyond what may be required by regulators or
environmental protection groups ,

- Corporate social responsibility; efforts by
companies to help their communities or repair any environmental damage they may cause that go
beyond what may be required by regulators or environmental protection groups ,


director-general: the head of a large organisation, especially a public organisation -
due to: because of -
economic (adj): connected with the trade, industry and development of wealth of a country, an area

or a society -
,
element: an important basic part of something complicated, for example a system or plan -
,

ensure: to make certain that something happens or is done - , ,
entice: persuade someone to do something by offering them something pleasant -
estimated: thought to be a particular amount, size, etc. based on a guess or the best information
available -
face: to (likely) have to deal with a problem - , ,
facility: a building used for a particular purpose -
fine: to be required to pay an amount of money because you have broken the law -
firms (noun): businesses or companies -

habit: a thing that you do often and almost without thinking, especially something that is hard to stop

doing - , ,

incur: to lose money, owe money, or have to pay money as a result of doing something - ,
indirect: happening not as the main aim, cause or result of a particular action, but in addition to it -

induce: to cause something, especially a mental or physical change -
institutions: large and important organizations, such as universities or banks -

intended: planned; wanted to happen -

legal: allowed by the law -

legal: relating to the law -

loophole: a small mistake in an agreement or law which gives someone the chance to avoid having
to do something - , ,
medical: connected with illness and injury and their treatment - , ,

minimum: the lowest possible; the lowest allowed -
,

pharmacy: a shop where medicines are prepared and sold -

pick up (verb): to start doing something, like an activity or hobby -

pose a problem: to be a possible difficulty or danger -

premature: happening too soon or before the usual time -
prohibited (adj): not allowed; to banned -
promotion: activities done in order to increase the attendance at an event or sales of a product or
service -
protect: to make sure that somebody/something is not harmed, injured, damaged, etc -
,,
public: open to people in general -
Public Health Minister (noun): the government minister in charge of the Public Health Ministry -

regulate: to control an activity officially by using rules -

religious (adj.): relating to religion, or to the beliefs and practices of a particular religion -

required (noun): forced to do or have something, especially because it is necessary according to a
particular law or set of rules -
restriction: a rule, action or situation that limits or controls someone or something - ,

sophisticated: complicated and advanced in design -
strategies (noun): plans or methods for achieving something, especially over a long period of time -
,
strict: demanding that rules are obeyed; very careful and exact -
subject to: affected by -
supervise: to be in charge of an activity and to check that everything is being done correctly -

takes effect: to begin to be used or required -

toughen (verb): to make somebody/something stronger and more able to deal with difficult situations
-
venue: the place where an activity or event happens -
version: a particular form of something which varies slightly from other forms of the same thing - ,


via: through - ()
violations (noun): the breaking of rules or laws -
zoo (noun): a place where many kinds of wild animals are kept for the public to see and where they
are studied, bred and protected -

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