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FRIDAY, JUNE 7, 2019
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Since 2011 / Volume IX / No. 23
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TAXING TIMES
20 Baht
NEWS
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Spirit medium beaten to death with baseball bat
EXCISE TAX BITES HARD AS PATONG BUSINESSES SUFFER
LIFE
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Frugal fashion at Phuket’s new clothing swaps
Entertainment business owners in Patong are crying foul over the new excise tax, saying they are already under too much pressure. Photo: Tanyaluk Sakoot
The Phuket News editor@classactmedia.co.th
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alls by Preechawut “Prab” Keesin, the well-known head of the Pisona Group of companies, for a reprieve on an 11% excise tax levied on entertainment businesses in Patong are gaining support, with leading business figures ready to lobby the Phuket Governor for support. The new tax, and alleged heavyhanded approach by officials in its collection, is being branded as possibly the final straw killing off entertainment businesses in Phuket’s busiest tourism town.
Mr Prab, a son of long-time former Patong Mayor Pian Keesin, said that the tax is too much for local businesses, who are already suffering heavily from plunging tourism figures. Mr Prab branded the excise tax as “state sponsored extortion”, and blamed the tax for businesses having to hike prices in a town that already has some of the highest ground rents on the island. “Patong is already experiencing economic problems, and it is the low season, ” he told The Phuket News. “At the same time, through its new tax calculation, the Excise Department is trying to take 11% tax from the income of entertainment operators
each month,” he added. Mr Prab estimated that 35% of entertainment businesses in Patong’s usually-bustling entertainment district, centred around Bangla Rd, had already folded. He also warned that more closures were to follow. The “new” 11% tax is technically a 10% levy on incomes on all entertainment businesses, plus a 1% “general tax”, introduced under the revised Excise Tax Act which came into effect on Sept 16, 2017. Now, with a full Thai tax year concluded since the new levy was introduced, tax officials are calling for operators to pay up – something
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that Patong business operators say they simply are unable to do. The current state of tourism in Patong has left entertainment business operators high and dry, they say. Despite officials continuing to report record numbers of tourist arrivals, the island’s top nightlife drawcard, Bangla Rd in Patong, has been taking a battering in business in recent years as the tourists visiting Phuket – and especially Patong – have changed in terms of demographics and source markets. Weerawit Kreuasombat, President of the Patong Entertainment Business Association (PEBA), which represents some 500 entertainment businesses...
SPORT
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Laguna Phuket Marathon pulls record numbers