Govt urged to extend tax deduction measure until first-quarter of 2016

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Govt urged to extend tax deduction measure until first-quarter of 2016

SUCHAT SRITAMA
PETCHANET PRATRUANGKRAI
SUCHEERA PINIJPARAKARN
THE NATION



BANGKOK: THE tourism and retail sectors have urged the government to extend the consumer tax deduction measure until next year in a bid to boost spending.

Chai Srivikorn, president of the Ratchaprasong Square Trade Association (RSTA), asked the government to extend its tax deduction measure, being endorsed for a week until the end this year, for another 2-3 months so as to cover the first quarter of 2016.

"Due to the short time, the current measure won't help increase consumer spending by much. It needs to also run for a few months early next year," he said.

Meanwhile, Ittirit Kinglake, president of the Tourism Council of Thailand (TCT), suggested that the current tourist tax deduction be extended for another year. This scheme was initiated in 2014 to encourage local people to travel and hold meetings and events at registered hotels. The measure is set to end next Thursday.

The government yesterday announced it would endorse the new tax deduction measure as part of the economic stimulus plans. Consumers who purchase goods worth up to Bt15,000 before December 31 can use receipts to claim the tax reduction.

According to Chai, even without the measure many people had already planned to spend some money during the festive season. Popular items will be gifts, travel, shopping, and dining.

Ittirit said people would not spend more money because of the measure, but they would be happy with the tax reduction.

He said registered hotels and shops nationwide would gain business as usual, as many people would take a long break to celebrate the New Year.

Busaba Chirathivat, senior vice president for corporate communications at Central Retail Corporation, said the tax deduction measure would help entrepreneurs in the new "Central Bangkok" shopping district as more foreign tourists and local visitors are expected during the year-end.

Siriporn Dechasingha, senior director of marketing & food service development at Siam Makro Plc, said that on the first day of the government's measure, more customers had visited its stores. The number of customers had increased by about 10 per cent, while customers are expected to spend about 20 per cent more during the end of this year.

She added that normally people spend more during the long New Year holidays. The government's tax reduction measure, discount campaigns and bonuses paid out by many companies should help increase spending.

Saitan Boonpitak, store general manager of Big C Extra Chaengwattana 2, said people were expected to spend more this year compared to the same period last year.

He said that sales should increase at least 10 per cent during the next one week, thanks to the government's tax deduction measure to stimulate spending.

Makro and Big C have also prepared officials and counters to issue receipts and tax invoices for customers, who want documents for tax deduction.

Thakorn Piyapan, managing director of Krungsri Consumer, the credit card and personal loan unit of Bank of Ayudhya (Krungsri), said the company has maintained total spending of 12 per cent despite the government's New Year gift to people because of the short period of the campaign.

However, he believes a tax deduction will encourage people to spend, while retailers and restaurants who registered for VAT will gain the most from the measure.

The final week is the highest in terms of Krungsri credit-card spending. Monthly spending per head will go up to Bt20,000-Bt30,000 up from Bt15,000-Bt17,000 on average.

Thawee Teerasoontornwong, executive vice president at Kasikornbank, said that the overall consumer spending is expected to rise by 20 per cent because of the tax deduction measure. In terms of KBank credit-card spending, the measure might not help boost spending as the Bt15,000 volume is not big enough and many mid to high consumers can pay by cash.

Kbank has maintained its card-spending growth of 12.5 per cent in 2015.

After surveying consumer spending yesteday, Somsak Kiatchailak, deputy director-general at the Internal Trade Department, said people seemed to spend more during the New Year.

The tax deduction measure and discount campaigns of many departments should help increase sales by about 20 per cent.

Source: http://www.nationmultimedia.com/business/Govt-urged-to-extend-tax-deduction-measure-until-f-30275706.html

-- The Nation 2015-12-26

[Pib]

I was at Pinklao Central here in Bangkok this morning, particually at the PowerBuy Electronics/Computer Store and the TOPS Supermarket and the poor customer service folks were swamped with people trying to get full tax invoices. Definitely a good deal "if you pay taxes/file an income tax return" in order to get the deduction. But I expect someone is not going to start filing an income tax return/get themselves into the tax system just to get a small deduction/rebate.

[elgordo38]

Rubbery numbers to the upside all over this statement. I must get the name of their fortune teller. This spend spend approach confuses me as on the other hand they keep stating that Thai's have a serious debt problem. Does the problem now become part of the solution. Boy I am really confused.

Edited December 26, 2015 by elgordo38