“Cabinet” Greenlights Draft New Signboard Tax Act, Charging Based on Actual Usage and Extending Payment Window to 30 Days

Today (3 November 2026) at 11:45 AM at Monthathip Hall International Convention Center, Mueang Udon Thani District, Udon Thani Province, Ms. Lalida Perwiwatana, Deputy Government Spokesperson, announced the outcomes of the Mobile Cabinet Meeting in Udon Thani Province. The Cabinet approved in principle the draft Signboard Tax Act (No. ..), B.E. ...., as proposed by the Ministry of Interior, to update the Signboard Tax Act, B.E. 2510 (1967) to align with current economic conditions and business models. Key highlights include adjusting tax collection methods to be fair to operators who do not display signboards year-round, extending the tax payment period, adding processing channels via electronic systems, and establishing tax reduction measures to alleviate public distress alongside enhancing revenue collection efficiency for local administrative organizations.

Ms. Lalida stated that a major change is adjusting the signboard tax collection criteria to correspond with the actual duration of installation or display. In cases where a signboard is not displayed year-round, tax will be calculated on a monthly basis, with fractions of a month counted as one full month, replacing the previous collection system that could overburden operators beyond their actual usage period. This creates fairness under the principle of “pay tax based on actual time used,” reducing burdens for operators—especially businesses using advertisement signboards solely during festivals, promotional events, or seasonal business activities.

Additionally, the tax payment period has been extended from 15 days to 30 days starting from the date of receiving the assessment notice, giving citizens and business owners more time to prepare payments. Electronic channels will also be opened for filing tax returns, submitting refund requests, and lodging appeals, while traditional processing through officers remains available. Moreover, issuing tax assessment notices and official orders will be permitted electronically to increase convenience and streamline bureaucratic procedures.

Ms. Lalida added that the draft law introduces measures to ease tax burdens when citizens and operators are impacted by economic situations or special events. It allows the issuance of Ministerial Regulations to reduce signboard taxes based on economic and social necessity, up to a maximum of 90% of the tax due, such as during disasters or events forcing business suspensions. It also establishes mechanisms to extend tax return filing deadlines when necessary. However, such tax reductions must comply with criteria specified in Ministerial Regulations and will not automatically apply to every operator.

Regarding tax rate structures, the draft law consolidates signboard categories from three down to two: signboards containing only Thai lettering or numbers, and other types of signboards. Maximum tax rate ceilings have been adjusted to reflect economic conditions. For instance, signboards with Thai lettering featuring moving text or numbers will have a rate ceiling capped at 50 baht per 500 square centimeters, while other cases are capped at 25 baht per 500 square centimeters (up from the previous rate of 10 baht per 500 square centimeters). These changes represent ceiling rate adjustments under the draft law; actual collection rates will be determined by relevant Ministerial Regulations rather than an immediate tax hike across all categories.

At the same time, measures to maintain public space orderliness have been added. Signboards installed or displayed encroaching on public space without permission will face double the calculated tax amount to curb improper installations. Paying the tax does not grant installers lawful rights to use public space, and compliance with other relevant laws remains required.

The draft law also revises signboard tax exemption rules for government agencies, specifying that exemptions apply solely to government signboards operating non-profit activities to foster fair competition with the private sector. However, relevant agencies noted that clear criteria should be established, particularly for state enterprises providing basic public services, which might face increased cost burdens affecting public service fees—a point requiring careful consideration during the legal drafting review process.

Furthermore, late payment surcharge rules have been revised to set surcharges at 2% per month, with the total cumulative surcharge capped so as not to exceed the original tax amount due, preventing excessive financial burdens. Rules for requesting refunds following assessment appeals have also been established, requiring applications within one year from receiving final notice of the ruling.

Ms. Lalida noted that the Ministry of Interior conducted public hearings on the draft law in accordance with statutory procedures, with 1,737 participants, 96.69% of whom expressed agreement. Regulatory impact assessments and legislative plans for related subordinate laws have also been prepared. Following Cabinet approval in principle, the draft law must undergo legal review and legislative enactment steps before taking effect, meaning it is not immediately enforceable.

“This revision of the signboard tax law aims to create fairness for citizens and operators, especially those who do not use signboards year-round, allowing them to pay tax according to actual usage time, enjoy a longer payment window, and utilize electronic systems more conveniently. Concurrently, it adds mechanisms to assist operators during economic impacts or disasters. The government prioritizes modernizing laws, cutting unnecessary burdens, and ensuring fairness in tax collection while developing local revenue to provide public services to the people,” Ms. Lalida said.

Photo : Yanawut Samphaothong