Tourism tax approved to stimulate domestic tourism

[englishoak]

My daily amusement by these clowns is now satisfied.

[Balance]

Right, I can envision everyone rushing to their accountants to make sure that they get their deduction; all 200 of them.

[Thai at Heart]

Considering almost no one files for taxes in the country, this will be an interesting one.

I disagree somewhat...

Where does the government then get it's revenue?

Government employees including military, police, hospitals and etc. do have tax payments......a lot of people.

Vehicle manufacturers, larger industries, retail and so on, also deduct tax from their employees if they are paid over the tax free thresh-hold, and of course there's the company tax.

But, 15k as a deduction is hardly going to make a dent..

Last I read, there are only a couple of million of registered tax payers. If you are below thrsholds, you don't have to file. I worked for a USA company here, and they paid everything onshore. the company lawyer came into see the accountant and explained that this was essentially nuts. He believe that the American CEO was in the top 300 local income tax payers. He was on 400k per month, which whilst being a lot of money isn't exactly a knock out in global terms. He reckoned that actually farangs declarign income in the country were the largest income tax payers in the country.

[belg]

why not promote tourism in this way: go visit the farmers in issaan, work the fields a few days, stay in a basic hut and eat rice & fish sauce

[konying]

I'm a "farang" paying 4,000+ Baht taxes per month. Can I deduct as well? 1B spent 1B deduction?

Yes, however how does one prove it was a holiday?

If i did not leave the town where i work, would i be able to claim my nights out? or would i have to be out of town?

[saakura]

Considering almost no one files for taxes in the country, this will be an interesting one.

For millions of people employed in the factories, offices, banks, railways, schools, govt, hospitals etc etc the tax is deducted at source before salary is paid. We only file returns to claim back some money as the tax is deducted at the highest slab. Then there are those who pay corporate taxes, VAT, sales tax etc. There is a lot of tax evasion but to say that "almost nobody here pays taxes" is drivel. Where does the govt get revenue from?

[connda]

They don't see the Catch-22 do they?

[ggt]

I love the concept...but think it will be another method for scamming the gov't out of money...

[Pundi6446]

What ?????? you mean people like this are going to stimulate

[Thai at Heart]

Considering almost no one files for taxes in the country, this will be an interesting one.

For millions of people employed in the factories, offices, banks, railways, schools, govt, hospitals etc etc the tax is deducted at source before salary is paid. We only file returns to claim back some money as the tax is deducted at the highest slab. Then there are those who pay corporate taxes, VAT, sales tax etc. There is a lot of tax evasion but to say that "almost nobody here pays taxes" is drivel. Where does the govt get revenue from?

The statment was no one files for taxes. So that by defiition would be individuals. Which the last I heard was only about 2 to 3mn people, out of a total workforce of 30mn and a population of 65.

So 3mn out of 30mn is about 10% which I would say, almost equates to almost no one.

http://asiancorrespondent.com/64442/will-the-thai-middle-class-rebel-against-populist-policies/

Then go and read a little deeper and you may see that about half ALL the income tax in Thailand is paid by 60,000 PEOPLE in TOTAL. So, this is a tax break for 60,000 people . Phoooooweeeeee. Knockout.

According to statistics released last year, only 2.3 million people nationwide pay personal income tax. Some 60,000 people each year pay taxes in the highest bracket of 37 per cent, which applies for an annual income of more than Bt4 million per year. This group of 60,000 accounts for as much as 50 per cent of total personal income tax collected each year

9mn file, only 2.3 million pay, and 60k pay half of it. What a ridiculous farce of a tax system

[Johpa]

What a great way to further facilitate the laundering of money through the countless resorts whose primary reason for existing is to have phantom bookings that then explain the funds deposited into the banking system.

[glcdc]

Thai -isms.

[GOLDBUGGY]

The Day My Government gives me a tax break to go on a holiday will be the day that I die!

[Thai at Heart]

What a great way to further facilitate the laundering of money through the countless resorts whose primary reason for existing is to have phantom bookings that then explain the funds deposited into the banking system.

Exactly.

I guess this will pay for many a phantom slap up meal

[konying]

Considering almost no one files for taxes in the country, this will be an interesting one.

For millions of people employed in the factories, offices, banks, railways, schools, govt, hospitals etc etc the tax is deducted at source before salary is paid. We only file returns to claim back some money as the tax is deducted at the highest slab. Then there are those who pay corporate taxes, VAT, sales tax etc. There is a lot of tax evasion but to say that "almost nobody here pays taxes" is drivel. Where does the govt get revenue from?

Incorrect . No tax is deducted at the source , and no factory worker ever pays any personal tax.

Government gets its taxes from registered company''a and mostly foreign owned as local owned hardly pay any tax.

A good reason why thailand has no social security or social services

[mango66]

Very great news !

Before the coup i got my favour in Jomtien sometimes for 4000,- per day,

this Xmas new year - cheapest booking - about 12.000,- ( prices are really down )

so my wife will profit that for 1 day hotel bill no tax, as she is in a lower category,

that means now for this year 15.000, thb no tax - means she - we save about 1.500,- thb/year;

for 70% of thais , the poor ones it means no savings !!

[tonbridgebrit]

Right, so the new system will reduce tax bills (your average 11000 baht per month Thai man is not actually going to benefit much from this) and reduce government revenue.
The money will boost companies that are in the tourist industry.

In that case, why not target all those who are paying tax, cut their tax bill by half or a third, and those people can then spend the money on anything they like, not just hotels and other companies in tourism. Yes, how to boost the economy, you cut everybody's tax bill, they've got more money to spend now, hence, more customers in shops and other places.

And by the time the government cuts public services because tax revenue has fallen, well, we'ill tackle that when we get there. So, less money for schools, hospitals, the army, police force, but more money going to shops, bars, hotels, restaurants, etc.

[Jonmarleesco]

That's original, as populist policies go. Though at least it won't result in a disproportionate increase in traffic. Or perhaps it will.

[Thomas Hannah]

As normal,,thai mentality,,they have totaly lost the plot,,

[DrTuner]

Try reading panthip. Any one with the money goes abroad. Those who don't have it, don't pay taxes.

[dundee48]

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Well, I guess it's an idea. But it smacks of being a populist policy using public funds. In reality it is nothing more than a subsidy for the tourism industry, to go along with the ones for rubber, rice and I dare some others that I don't know about.

I've said it before and I'll say it again, subsidies are not sustainable in the long term. Better to spend the money on improving the tourism product so that people want to buy it.

Stop being sensible.

[MAJIC]

Somehow I lost interest long before the punchline! of Tourism gains!

[Strangebrew]

Ah come on where is Allan Font? I know this is Candid Camera. Or Ronald Reagan is alive and well in Thailand Dictating tax issues and policy.Reminds me of that Beatle song Taxman.

[gyrosman]

Has any of these people been to and finished a proper business degree?