People shop for books qualified for tax rebates in 2018. The tax incentive scheme for shoppers will return this month. (Photo: https://www.bangkokpost.com/) Bangkok (VNA) – The Thai cabinet on October 12 approved tax incentives to boost domestic consumption in a bid to revive an economy struggling with impacts of the COVID-19 pandemic.
Local media quoted Prime Minister Prayut Chan-o-cha as saying that the government will offer a tax deduction of up to 30,000 THB (nearly 1,000 USD) per person on purchases of goods and services.
Effective from October 23 until December 31, the tax deduction offer will apply to the 2020 tax year and to products and services with a 7-percent value-added tax (VAT).
About 4 million people are expected to benefit from the programme, which is forecast to inject about 120 billion THB into the country's economy.
However, it will also cost the state about 12 billion THB in missing tax revenue.
Danucha Pichayanan, deputy secretary-general of the National Economic and Social Development Council, said all types of products and services with VAT will be included in the tax deduction programme, except for alcoholic beverages, tobacco products, government lotteries, fuel, accommodation services and air tickets.
Though Thailand has been relatively successful in curbing the COVID-19 outbreak and most of economic activities have resumed, its central bank believes that it may take at least two years for the economy to return to the pre-pandemic levels.
The Bank of Thailand predicted an economic contraction of 7.8 percent for the country this year./.
VNA
