Thailand plans to tax gold trading to curb the impact of baht appreciation on exports and tourism.
The Thai government is considering taxing physical gold transactions, aiming to curb the rapid appreciation of the national currency and protect the export and tourism sectors affected by it.
According to reports from Bloomberg on the 15th citing informed sources, the Bank of Thailand and the Ministry of Finance are discussing taxing gold bought and sold through various online channels and settled in Thai baht. The source added that such taxation may exempt gold traded in US dollars, traded on futures exchanges, or purchased in gold and silver shops.
Through taxation, the Thai government hopes to reduce gold exports and increase the cost for Thais to hold gold. Informed sources added that the inflow of US dollars related to gold transportation is one of the reasons driving the Thai baht higher.
After the news broke, the exchange rate of the Thai baht against the US dollar fell in response, at one point dropping 0.6% to 31.92, marking the largest single-day drop since July 31.
Robust gold export earnings pushed the Thai baht last week to its highest level since 2021. So far this year, the baht has appreciated by 7%, increasing calls for the central bank to take stronger intervention measures to protect exports and tourism.
Tax details still under discussion, some transactions may be exempt
Implementation details of the new tax are still being discussed. Reports say the Bank of Thailand and the Ministry of Finance will hold more talks, but a final decision will only be made after the new cabinet takes office. The tax could be introduced as a "special business tax."
Sources said, as long as gold sellers convert US dollar proceeds to Thai baht, such transactions could be taxed. However, the specific tax rate has not yet been finalized.
Officials from the Bank of Thailand plan to meet with representatives of gold trading companies on Monday to discuss the impact of gold transactions on the baht and ways to strengthen transaction reporting.
Soaring gold exports fuel baht strength
According to data from the Thai Customs Department, in the first seven months of 2025, Thailand's gold export value surged 69% year-on-year to 254 billion baht (about $8 billion). Among them, exports to Cambodia saw abnormal growth, prompting calls for an investigation.
When Thai investors sell gold, they usually convert the US dollar proceeds into local currency, a process that pushes up the baht’s exchange rate. The Bank of Thailand has primarily attributed the appreciation of the baht to a weaker dollar and external factors, and has pledged to intervene in the market to curb any excessive volatility.
The strong baht is hurting Thailand’s two main economic pillars—exports and tourism, which together account for 70% of the country’s GDP.
Last month, the country’s export goods just suffered a 19% tariff hit from the United States, and due to the strong baht and tourists’ concerns about safety, foreign tourist arrivals have also declined.
MTS Gold Group, one of Thailand’s largest gold traders, said that nearly 70% of gold purchased by Thais is through various online platforms. Most of Thailand’s gold demand relies on imports, and in 2025, gold demand is expected to grow for the fifth consecutive year, reaching 53.7 tons.
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