BUSINESS

THAILAND APPROVES TAX INCENTIVES TO BOOST DOMESTIC CONSUMPTION

12/10/2020 09:00 PM

By Linda Khoo Hui Li

BANGKOK, Oct 12  – Thailand’s cabinet has approved tax incentives to boost domestic spending in a bid to revive its struggling economy impacted by the coronavirus pandemic. 

Government spokesperson Anucha Burapachaisri said the government will offer tax deductions of up to 30,000 baht (RM3,991) on purchases of goods and services. 

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

The tax incentives will take effect from Oct 23 until Dec 31, and it applies to the 2020 tax year.

He added that all types of products and services would be included in the initiative except for alcoholic beverages, tobacco products, lottery, petrol, accommodation, and flight tickets.

Earlier, the government agreed to a three-month 500 baht cash handout to 14 million welfare cardholders, totalling 21 billion baht.

The government also approved a 30 billion baht cash handout to 10 million people to buy consumer goods during the final quarter of the year.

Meanwhile, Prime Minister Prayuth Chan o-cha said the economic impact of the COVID-19 pandemic has been severe in many countries.

“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.

A protest is expected in Bangkok on Thursday, as demonstrators are poised to reiterate their demands to dissolve parliament, rewriting of the constitution, ending the harassment against government critics, and monarchy reforms.

-- BERNAMA

 

 


 


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