Thai retailers attribute strong sales to tax incentive campaign

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ECONOMY
Retailers attribute strong sales to tax incentive campaign
THE NATION



BANGKOK: -- RETAIL SALES OF consumer products in Bangkok and other provinces have jumped by 5-20 per cent over the past few days, attributed to the special tax incentive offered by the government for year-end shopping.

The week-long campaign started on Christmas Day.

Prime Minister Prayut Chan-a-cha yesterday urged people with plenty of disposable income to spend more to help stimulate the economy, but was noncommittal about an extension of the tax measure beyond this year.

Warunee Kitjaroenpoonsin, director of corporate affairs at Big C Supercenter, said the hypermarket chain had followed up by launching a marketing campaign to boost sales of home appliances, smartphones, electronic gadgets and other popular items.

Besides the tax break of Bt750-Bt5,250 per customer, extra discounts are offered to buyers of these products during the "Shop Puer Chat" (Shopping for the Nation) campaign, she said.

"Since Day 1 of the tax-deduction measure, all stores have seen more customer traffic. So far, sales have gone up 10-20 per cent, with both large and small electrical appliances, gift items and dry food products among the best sellers," she said.

All branches are now ready to provide full VAT (value-added tax) receipts for consumers to claim the tax credit, which takes only five to 10 minutes to issue thanks to the deployment of additional staff and printers.

The year-end tax rebate has helped increase consumer spending and will eventually benefit the overall economy, she said.

Salinla Seehaphan, director of corporate affairs for Tesco Lotus, said the number of visitors to the hypermarket chain had zoomed over the past three days because they want to get the tax credit as well as the store's special discounts and gift vouchers.

Rangsit Plaza Co, operator of Future Park Rangsit Shopping Centre, said shoppers had increased by 5.7 per cent for the December 25-27 period.

A sales clerk in the home-appliance section of HomePro at the Mega Bangna Shopping Mall said people had flocked in to buy refrigerators during the weekend because of the campaign.

"On Sunday alone, we were able to sell 15 fridges. Sales in other sections also rose," he said.

During the remaining days of the campaign, he expects more people to come.

Robinson Department Store said sales at its branches were up by an average of 20 per cent from normal weekends.

"We have seen a long queue of shoppers waiting to apply for the tax deduction at our major locations, especially Chiang Mai, Surat Thani and Bangkok.

"We provide shoppers with seats and queue cards to make it more convenient for them," he said.

"Customers can go on shopping at the department store and come back to pick up their tax form later before going back home."

Fashion products, home decorative items and watches were among the hot sellers.

In the northeastern province of Buri Ram, Taweekij Super Centre, a major retail operator, reported a 10-per-cent increase in sales of consumer products.

Sirinun Rojanasinwilai, executive director, said more than 200 customers per day had asked for full VAT receipts since December 25.

The government should continue the tax privilege for 30 more days to animate the local economy, he said.

Source: http://www.nationmultimedia.com/business/Retailers-attribute-strong-sales-to-tax-incentive--30275847.html


-- The Nation 2015-12-29

[Langsuan Man]

That picture above is a shot of all the people in Thailand that actually pay income tax so they can claim it

Move along farangs your too foreign to qualify unless you are planing on leaving this week

[elgordo38]

I find these so called "gifts" like the new car rebate scheme look good for the present but tend to rob from future sales down the road. Yes they are a present plus so people can load and charge "stuff" they do not need to their already wilting plastic. Yes credit is a wonderful thing if used properly and therein lies the dilemma.

[DrTuner]

Thais are uniquely tuned to causality. They can give out statements in real time or even before the fact. In case of TAT, as long as half a year or on a good day, a decade beforehand.

[ldiablo]

The year-end tax rebate has helped increase consumer spending and will eventually benefit the overall economy.

Citizens already highly burdened with debt in Thailand, but lets give them an incentive to go into debt even further.

Well played

[Prbkk]

I find these so called "gifts" like the new car rebate scheme look good for the present but tend to rob from future sales down the road. Yes they are a present plus so people can load and charge "stuff" they do not need to their already wilting plastic. Yes credit is a wonderful thing if used properly and therein lies the dilemma.

The real (and probably intended ) beneficiaries are the retailers. Otherwise it's mostly people buying stuff they don't need and probably can't afford, maybe some white goods excepted.

[ravip]

I wonder how many of the above posters ACTUALLY made a survey of Thai people who made use of the above mentioned tax incentive to make these comments so confidently.

[DrTuner]

I wonder how many of the above posters ACTUALLY made a survey of Thai people who made use of the above mentioned tax incentive to make these comments so confidently.

Just for you, I did that. 0 out of 11 Thais here knew about the incentives.

[TerminalVelosity]

Any discounts at the red light districts? Just asking

[skildpadden]

I am paying my taxes here and I need a new toaster - how do I go about claim back the VAT on this tax incentive?

[Prbkk]

I am paying my taxes here and I need a new toaster - how do I go about claim back the VAT on this tax incentive?

Forget it. Eat cake

[GarryP]

In my department at the office everyone knows about it. I will be taking benefit myself and buying a much needed replacement water filter.

[GarryP]

I am paying my taxes here and I need a new toaster - how do I go about claim back the VAT on this tax incentive?

You do not claim the tax back. When you submit your income tax form (Por Ngor Dor 91) you will need to indicate the value of the product bought and attach a copy of the receipt. You will be entitled to a rebate on goods up to the value of Baht 15,000. So if you buy a 15,000 Baht toaster and are in the 20 percent tax bracket, you will get back a check for Baht 3,000, assuming you are not getting any other rebates for LTFs,, RMFs or life insurance premiums.