Revenue chief to give more tax credits for second child

 

 

The Revenue Department is now ready to amend the present Revenue Code to give more tax credit for second child.

 

Under its proposal, parents having the second child will get 120,000 baht tax credit for each child.

 

According to Prasong Poontaneat, director-general of the Revenue Department, the tax credit was aimed at encouraging parents to have more babies.

 

He said revenue officials are now ready to amend the existing law to give tax credits to parents who have second child.

 

He said tax credit for second baby will be capped at 120,000 baht, breaking down to 60,000 baht per year as expenditures for raising the baby, and 60,000 baht for maternity-related health care spending at hospital.

 

Full Story: http://englishnews.thaipbs.or.th/revenue-chief-give-tax-credits-second-child/

 

-- © Copyright Thai PBS 2017-12-8

18 hours ago, snoop1130 said:

120,000 baht tax credit

That's a tax credit, not a tax deduction. If a family was in a 25% tax bracket, this tax credit would be worth 480,000 baht in tax deductions. That seems very generous. Of course a taxpayer has to have a net tax liability to be able to actually use the tax credit.

19 hours ago, snoop1130 said:

the tax credit was aimed at encouraging parents to have more babies.

Two major factors contributing to slowed birthrates in Thailand are rapid aging of the population and lower fertility rates. Obviously, these will not be affected by the second child tax credit. What evidence does the government have that there is a cause and effect between these 2nd child tax credits and higher birthrates?

19 hours ago, snoop1130 said:

60,000 baht per year as expenditures for raising the baby

What controls will be in place to assure the 2nd baby exists and to what age will this tax credit apply? This credit could cause a serious drain to the treasury revenues that will last years.

 

The bottom line is this is another quick tax gimmick by the government intended to create social change. As opposed to addressing on a broader scale more tangible economic vehicles, ie., raising the minimum wage to provide families more affordability for larger families, subsidized housing, training for skilled jobs, job protections to encourage better pay, etc. But such solutions cannot be done overnight and require careful analysis. Something that doesn't seem to be a hallmark of the current government.

20 minutes ago, Srikcir said:

That's a tax credit, not a tax deduction. If a family was in a 25% tax bracket, this tax credit would be worth 480,000 baht in tax deductions. That seems very generous. Of course a taxpayer has to have a net tax liability to be able to actually use the tax credit.

Two major factors contributing to slowed birthrates in Thailand are rapid aging of the population and lower fertility rates. Obviously, these will not be affected by the second child tax credit. What evidence does the government have that there is a cause and effect between these 2nd child tax credits and higher birthrates?

What controls will be in place to assure the 2nd baby exists and to what age will this tax credit apply? This credit could cause a serious drain to the treasury revenues that will last years.

 

The bottom line is this is another quick tax gimmick by the government intended to create social change. As opposed to addressing on a broader scale more tangible economic vehicles, ie., raising the minimum wage to provide families more affordability for larger families, subsidized housing, training for skilled jobs, job protections to encourage better pay, etc. But such solutions cannot be done overnight and require careful analysis. Something that doesn't seem to be a hallmark of the current government.

Sorry mate your way off base here, normally more income means smaller families, that is how it has always been. A tax credit makes sense and yes it only helps those that pay quite a bit of tax. Good for them they are actual contributors to the Thai tax proceeds let them benefit for a change too instead of trying the same old bail the farmers out every time. Its time that people who actually pay tax get some rewards. 

 

Though I doubt there are that many people who pay enough tax, so its a small base of people to make real change on the other hand its often those people who make a lot of money who have smaller families many poor have actually quite large families already so they would already not qualify as they have many kids already.