Thailand approves tax incentives to boost domestic consumption

By TIN Media | Asean News Published 2 weeks ago on 13 October 2020
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BANGKOK:

In an attempt to revitalise its declining coronavirus-impacted economy, the cabinet of Thailand has welcomed tax incentives to raise domestic spending.

Government spokesman Anucha Burapachaisri said the Government is going to provide deductions of tax on goods and services of up to 30,000 baht (RM3,991).

“The measure is expected to cost the government 14 billion baht in lost revenue but it will increase gross domestic growth by 0.30 percent, contributing about 111 billion baht into the economy,” he said at a press conference at the Government House here.

Tax benefits are valid from 23 October to 31 December and apply to the tax year 2020.

He added that all goods and facilities, excluding alcoholic drinks, tobacco products, lottery, petrol, accommodation, and flight tickets, will be included in the initiative.

The government earlier agreed to hand over 14 million social security cardholders a cash distribution of 500 Baht for three months, with a total of 21 billion Baht.

In the final quarter of the year, the government has also approved a cash allocation of 30 billion Baht to 10 million people.

In the meantime, Prime Minister Prayuth Chan o-cha said that in many countries the economic effect of the COVID-19 pandemic has been serious.

“Once the public starts spending, it will boost domestic consumption and benefit related business activities and job creations.

“The public should not do something (anti-government protest) in delaying the government’s efforts to recover from the impact of COVID-19. Please help to maintain peace and order in our country and respect the law. Let the authorities oversee the situation,” he said.


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