Date: 22 January 2003

Thailand has announced plans to enhance an excise duty on the entertainment industry. Entertainment businesses from karaoke bars to massage parlors to cinemas will have to pay a new tax which could be as much as 20%.

The tax would be imposed on entertainment, gambling or anything which affected environment. The plan is being introduced by the government as the revenue-raising measure, not an attempt to limit the number of clients who go to massage parlors or night clubs

The higher duty embraces the telecoms as well. It is changing the system whereby telecoms companies shared a percentage of their profits with public utilities into a tax system. The government says this will introduce transparency into the telecoms industry.

In addition, it is said that this is a move to comply with World Trade Organization rules.

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