Thailand: Proposal for domestic tourism 'tax rebates'

[webfact]

Proposal For Domestic Tourism 'Tax Rebates'
By Khaosod English


Tourists on Pha Mo Edang cliff on the border of Thailand and Cambodia, August 9 2014.

BANGKOK — The president of Thailand’s Tourism Council has proposed providing tax refunds for domestic tourists in an effort to resuscitate the country's devastated tourism industry.

Piyaman Techapaiboon said she would officially submit a proposal to the military junta's National Council for Peace and Order (NCPO) in the next joint meeting between the private sector and state authorities.

In the proposal, Ms. Piyaman calls for giving up to 20,000 baht per person in tax rebates for spending related to domestic tourism. Examples of related spending include staying at "legally registered" hotels and taking trips from tour companies that have been registered with Ministry of Commerce.

"We believe that if this proposal is approved and enforced in time, it will greatly boost tourism in the upcoming [tourist] high season," said Ms. Piyaman.

Thailand's tourism industry, which generates significant revenue for the country each year, has been suffering from a prolonged slump since demonstrations against the government of Prime Minister Yingluck Shinawatra broke out in November last year.

The protesters occupied major intersections and government buildings in Bangkok, while shadowy militants launched regular attacks on the protesters' camps. More than 30 people were killed over the six months of street protests.

The protest campaign ended after the Thai army toppled the elected government in a coup d’etat on 22 May, bringing back a sense of calm to the country. However, the martial law imposed by the military junta has continued to discourage many potential tourists from visiting Thailand.

According to data released by the Tourism Authority of Thailand (TAT), tourist arrivals for the first seven months of 2014 dropped by 10.47 percent compared to the same period last year, likely due to political unrest. Revenues from tourism for the same period also dropped by eight percent.

However, Ms. Piyaman believes the tax rebates and other measures will help Thailand reach its original goal of achieving 800 billion baht in tourism revenue and 148 million in domestic tourism trips by the end of 2014.

"The [tax refund] should be in place for a year to raise awareness among tourists and give them time to plan their trips," Ms. Piyaman said, adding that similar measures were experimented with for three months under former Prime Minister Abhisit Vejjajiva in 2010 but that the results were "unclear."

Meanwhile, deputy president of the Tourism Council of Thailand Thanate Worasaran said the tax rebates proposed by Ms. Piyaman will cost the state more than 4 billion baht, but claimed the loss could be easily compensated for with VAT and corporate taxes.

Source: http://en.khaosod.co.th/detail.php?newsid=1408008585

[khaosod]2014-08-14[/khaosod]

[Prbkk]

Subsidize holidays for the rich. Why is this not surprising.

[terryp]

if tourism has dropped by only 10.47% ............then WHY ALL THESE PANIC MEASURES?, bottom line stop the hotel tax, stop the dept tax and then see how it goes

[worgeordie]

Rebate the tourists and tax soft drinks,whose thinking these ideas up.

regards Worgeordie

[jonclark]

if tourism has dropped by only 10.47% ............then WHY ALL THESE PANIC MEASURES?, bottom line stop the hotel tax, stop the dept tax and then see how it goes

 

I think the clue maybe in the first paragraph .."devastated tourism industry" 

[NongKhaiKid]

Tourism is down,  it's up,  it's recovering , it's devastated.

 

What we get told seems to depend on who wants their ' 15 minutes ' on any given day.

[khwaibah]

Tourists on Pha Mo Edang cliff on the border of Thailand and Cambodia, August 9 2014.

 

 

If Thailand had not shot itself in the cojones  they could be visiting Preah Vihear  instead of just looking at from a distence and that in itself would have generated

billions of baht more for local tourism.

 

Edited August 14, 2014 by khwaibah

[HiSoLowSoNoSo]

"In an effort to resuscitate the country's devastated tourism industry"

 

 Maybe a good and inexpensive move would be, not expel your long term tourists trough silly new Visa rules?
 

[h90]

Subsidize holidays for the rich. Why is this not surprising.

 

Most probably still a Thaksin man.

[Thai at Heart]

Devastated?  

 

Thaialnd is a third world country.  Thais don't take vacations the same way as the rest of the world.  Taxes won't change that fact.

[SoFarAndNear]

 

 

devastated tourism industry

 

As far as I understand TAT everything is under control 

[Pib]

Just another of many "proposals" submitted by many different groups/people to the NCPO...it's the "in-thing" to do right now.   The NCPO should have a warehouse full by now.

 

I'm submitting my proposal tomorrow...not sure what it will be right now but I will think of something tonight.

[madmitch]

It won't make a scrap of difference. You have to pay taxes to qualify for a rebate. 

Edited August 14, 2014 by madmitch

[Arkady]

Thought this happened last year or maybe it was just a proposal but it only included complete tours booked thro travel agents. Including hotels will be of interest to middle income earners who pay tax. 20k makes no difference to the rich.


Sent from my iPhone using Thaivisa Connect Thailand

[Arkady]

"In an effort to resuscitate the country's devastated tourism industry"
 
 Maybe a good and inexpensive move would be, not expel your long term tourists trough silly new Visa rules?
 

Come now. Nothing has changed for long term visitors with the right visas. Visa runners, overstayers and illegal workers are not long term tourists


Sent from my iPhone using Thaivisa Connect Thailand

[robertthebruce]

Spend the money on Safety for Tourists,

I.e. Driving standards, Jet Ski scams and cleaner beaches .......

The list could,go on..........

[Christie Paul]

 

"In an effort to resuscitate the country's devastated tourism industry"
 
 Maybe a good and inexpensive move would be, not expel your long term tourists trough silly new Visa rules?
 

Come now. Nothing has changed for long term visitors with the right visas. Visa runners, overstayers and illegal workers are not long term tourists


Sent from my iPhone using Thaivisa Connect Thailand

 

 

When locals lose their jobs, when their business's fail, when their cars and houses are repossessed, I'm sure they will take comfort in the fact that no "real tourists" have been targeted and that really nothing has changed.

[ebean001]

No more force closing of bars is the first step. Let bars open as long as there is a tourist spending money. Millions of jobs in thailand depend on this - including police jobs for sure. Let the nightlife tourist spend, spend, spend. They love to spend. Don't stop them. Then the police needs to serve and protect them. Why stop the cash cow?

[ScotBkk]

Clutching at straws comes to mind .............

Edited August 15, 2014 by ScotBkk

[alant]

Just another of many "proposals" submitted by many different groups/people to the NCPO...it's the "in-thing" to do right now.   The NCPO should have a warehouse full by now.

 

I'm submitting my proposal tomorrow...not sure what it will be right now but I will think of something tonight.

I think you may have a point 

If I was a Thai and able to decide such issues I would wonder how the proposer proposes this is paid for? I assume a properly costed plan would be provided with the suggestion...

If I was Thai and able to propose then I may hijack the idea and suggest the government give a grant of 20,000 thb to all overseas visitors that holiday here this year. They must fly with Thai air (thus helping the troubled airline) stay for a minimum of 14 nights plus spend 10,000 thb on Thai rice thus enhancing the quality of their life experience whilst taking care of the slight overstock of the product at present.

Edited August 15, 2014 by alant

[PS2]

Subsidize holidays for the rich. Why is this not surprising.

 

Yes, one more of Thaksins puppets that should be "transferred" to inactive post.

[96tehtarp]

The devil is in the details. What are the details of this proposal?

[Jasun]

Maybe everyone can get a free bag of rice with every subsidised holiday. 

[PoorSucker]

Subsidize holidays for the rich. Why is this not surprising.

 

 

The rebates are taken of the taxable income.

 

If I had no wife and children and made 40.000 / month the total gain for me would be 3000 baht / year.

 

Right now I get tax rebate of 20.000 baht for supporting my wife and 15.000 baht for my son.

So my win would be 1000 baht.

 

A newly examined civil servant would make 1000 baht.

If I had no wife and children and made 500.000 / month the total gain for me would be 3000 baht / year.

 

If you think that you would get 20.000 baht net, everyone earning under 35.000 baht per month would not pay any tax at all.

So actually a reform for the middle class.

 

If you make less than 150.000 / year you don't pay any tax .

 

http://www.rd.go.th/publish/6045.0.html

[gigman]

Yeh, yeh.. 

 

Boost tourism...(??? ) encourage tourists by what type ??.. Thai's ??  spending time in registered (means to expensive for locals) hotels ....IT IS JUST JOKE>>

What about us westerners?? 

Your top ranks and also bottom  visa authorities just tightening tourist visas also telling us that 1 month is enough for tourism....(???) ( but from Thai's point of view and wages ..even one week is to much and not affordable hence I do not blame them for this kind of imagination as for visa rulers)

To really see this country deeper an average tourist needs more then one month...

After travelling 10 hours in the bus ...you need at least 2 days to recover...555. just for eg.

I have spent 2 months here and did not see really much ...due to travelling time and recovery etc.. This is big country and if you want really relax and see something without to be on a hurry you must have more then one month.... 

Means one hand some goodies (not for all) and another ... blockages.

I fully understand tourism authorities but somehow they do not work hand in hand with other government departments. 

 

Anyway I love this country and I wish them luck with this tax idea!

[Alwyn]

 

Subsidize holidays for the rich. Why is this not surprising.

 

Most probably still a Thaksin man.

 

?

[Krataiboy]

". . . in an effort to resuscitate the country's devastated tourism industry."

 

Either this is journalistic hyperbole or the situation is a lot worse than TAT and the current regime is letting on.

[Brian Corrigan]

I thought populist policies were a no no. Anyway is there any news on the outcome of TAT's last street party,yes,you know, the one  that was supposed to be the street party to end all street parties and generate loads of cash? Most Thai's are still trying to find the money to pay off their car loans........or return the cars they can't afford.  

 

[Boss]

Quite simple actually - let all Thai owned  shops, bars, restaurants, laundries, hotels, guesthouses, and whatever pay VAT, social security and taxes. That will fill the empty coffers in the government house......