Will tax breaks help the Thai economy change gear?

[webfact]

 

The government has launched tax breaks to encourage consumer spending this year, in a bid to stimulate the economy. But will it work and who is going to benefit?

 

From January 1 to February 15, the governments is implementing “Easy E-Receipt”, a tax deduction measure.

 

Who is eligible?

 

Under the scheme, individuals will receive a tax deduction of up to 50,000 baht from their taxable income if they shop for goods and services from businesses in line with government criteria.

 

The actual tax deduction will materialize when they file their annual personal income tax returns next year.

 

To take advantage of it, consumers have to get an e-tax invoice or e-receipt from the sellers. The e-tax invoice will be issued by businesses registered in the value-added tax (VAT) system, which includes large corporations.

 

But some items are excluded from the tax deduction scheme. They include: alcoholic drinks-spirit, beer and wine; cigarettes; car, motorcycle, and boat; oil and gas for vehicles; utility bills – electricity, tap water, telephone and internet are not covered; long-term service contract beyond January 1-February 15 this year; non-life insurance premium.

 

Promoting community-made products

 

Shoppers buying goods and services from businesses that are not registered in the VAT system will be issued an e-receipt.

 

Eligible products are: books, newspapers and magazines; electronic books, newspapers and magazines; products of OTOP which are registered with the Community Development Department, as the government wants to promote village-made products.

 

Full story: The Thaiger 2024-01-09

 

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[StayinThailand2much]

The effect will be, in my opinion, negligible; certainly nothing to 'help the economy change gear'.

[hkblademan]

Wonder if tax resident expats can now apply for this deduction too …..

[spidermike007]

I wonder if this will encourage Thais to start reading books. Getting a tax credit for books, what a wonderful and novel concept. 

[freeworld]

See paying tax can have benefits.

[hotchilli]

4 hours ago, webfact said:

But some items are excluded from the tax deduction scheme. They include: alcoholic drinks-spirit, beer and wine; cigarettes; car, motorcycle, and boat; oil and gas for vehicles; utility bills – electricity, tap water, telephone and internet are not covered; long-term service contract beyond January 1-February 15 this year; non-life insurance premium.

Always a catch.

[newnative]

Totally useless and unworkable.  Big ticket items excluded, newspapers and magazines (HUH?) included.  Who thinks up such nonsence.    Zero tax on any expat money brought into the country would make more of an impact, with the new tax mess.