New tax cuts granted to increase tourism in smaller cities

[snoop1130]

 

The government has approved plans to encourage tourism in smaller cities during the off-peak period. Deputy Finance Minister Paopoom Rojanasakul announced this new policy applies to both firms conducting seminars and individuals on holiday.

 

Under the new plan, firms will be able to subtract expenses such as seminar rooms, accommodation, transport, and more from their corporate tax. This is for domestic employee seminars or tour operator service fees for these seminars, starting from May 1st till November 30th.

 

If seminars are held in secondary touristic provinces or defined tour spots, expenses will get double deductions. In non-secondary areas, the deduction will be 1.5 times. If a seminar covers both kinds of cities, costs have to be split, or else a 1.5 times reduction is applied.

 

During the same period, individuals on vacation can deduct up to 15,000 baht, about $410, from their income tax for their expenses on tour operators or accommodations within secondary touristic provinces. These measures demand a complete tax receipt digitally through an e-receipt system.

 

Paopoom asserts these strategies aim at promoting tourism in smaller cities and facilitating travels in the low season. Yet, he estimates these could cost the government about 1.78 billion baht, roughly $49 million in tax revenues this year.

 

Chayabol Hirankanokkul, President of the Phang Nga Tourism Council, raised concerns about this choosy strategy. He pointed out Phang Nga, not labeled as a secondary city, would miss out on the tax cuts, despite earning just 50 billion baht, approximately $1.4 billion annually from tourism. He argued smaller cities might not have the capacity to host big meeting and seminar crowds.

 

A Thai Hotels Association board advisor, La-iad Bungsrithong, added that promoting smaller cities through tax cuts might not be sufficient to drive the entire tourism market, particularly the convention sector. She suggested the government should push state bodies and big companies to spend on meetings in any local destination within the fiscal year 2024, which wraps up in four months.

 

File photo for reference only

 

-- 2024-06-05

 

Get our Daily Newsletter - Click HERE to subscribe

[hotchilli]

Desperation sinks in.

[Ben Zioner]

On 6/6/2024 at 1:43 PM, hotchilli said:

Desperation sinks in.

Absolutely not, they are going to tax YOU.

[watchcat]

On 6/5/2024 at 9:47 AM, snoop1130 said:

The government has approved plans to encourage tourism in smaller cities during the off-peak period.

 

No no don't do that we don't want them.

 

[lordgrinz]

Tax incentives for Thai's, tax increases for dirty farangs.....gotcha.

[Chris Daley]

And on your left is a pile of trash.