Bt15 billion spent after govt’s tax-incentive plan

[rooster59]

Bt15 billion spent after govt’s tax-incentive plan

BANGKOK: THE government estimates that more than Bt15 billion was spent in the last week of 2015, with a sudden rush of money outlaid on certain products and services because of a tax deduction.

Government spokesman Maj-General Sansern Kaewkamnerd said the estimate was based on an assumption that at least 50 per cent of the two million income earners who pay tax went out shopping during the period from December 25 to 31.

"That means more than Bt15 billion was spent in just a week. This measure is considered a success. It covers a large variety of products and services," he said.

The spokesman said the government was satisfied with the result of the measure, which was aimed at stimulating the economy towards the year-end. "We found that malls were crowded with shoppers, and numerous orders were made for goods and services," he added.

Sansern said the government's economic team would come up with more similar stimulus |measures. He suggested that businesses should be properly registered in the tax system so they can benefit from such measures in the future.

The government spokesman also shrugged off criticism by Pheu Thai Party of the government's handling of economic problems. He said the government was not concerned over a forecast by a Pheu Thai politician that the Thai economy would worsen this year.

"That view did not take into account all the relevant factors. Also, it went against predictions by leading organisations such as the Chamber of Commerce, financial institutions and other local and foreign economic-related agencies. They all agreed that the Thai economy would go up in 2016," he said.

Sansern said the government would invest more on large utility projects in order to boost government spending. Also, the economic team would implement more and more economic stimulus measures that "are beyond expectation". He said economic growth in 2016 would be as targeted.

Pheu Thai's Pichai Naripthapan, a former energy minister, had said that the ailing global economy would continue to affect the Thai economy, with 2016 shaping as a more difficult year than 2015.

Sansern said yesterday there were biased people who say bad things about the government due to political motives.

Source: http://www.nationmultimedia.com/politics/Bt15-billion-spent-after-govts-tax-incentive-plan-30276026.html

-- The Nation 2016-01-03

[Prbkk]

As no doubt intended, a great boost to the struggling retailers and malls. Does nothing for Small business and of dubious value for many of those buying non-essential goods.

[oneday]

Wow! Making connections where no connections can possibly be made.

The government spinning stories of success from empty air.

[Briggsy]

Does "tax deduction" mean

1) an effective tax refund through the PAYE system?

2) a tax refund in the form of a cheque?

3) an increase in taxes from 1 Jan 2016 causing people to buy before the tax-inclusive price of goods increase? (I know this is the case for cars)

This is yet another article in the press here that leaves the reader confused.

[JOC]

90 % paid with credit cards, bringing people even more into debt...........................

[phoenixdoglover]

A cogent market analysis by The Ministry of Happy Talk.

[JOC]

Does "tax deduction" mean

1) an effective tax refund through the PAYE system?

2) a tax refund in the form of a cheque?

3) an increase in taxes from 1 Jan 2016 causing people to buy before the tax-inclusive price of goods increase? (I know this is the case for cars)

This is yet another article in the press here that leaves the reader confused.

The amount spent during the campaign becomes deductible from the amount on which you pay income tax.............

You spend 15.000 during the campaign:

Your income tax rate is 5% = You pay 750 less in tax

Your income tax rate is 10% = You pay 1500 less in tax

[Eric Loh]

Thailand economy is about 1T USD annual and here we have a economist wannabe claiming Bt15 B stimulus package a success. He should use stick to regurgitating scripts as a spokesman.

[brommers]

Billions of extra credit used by increasingly debt burdened people. Billions of purchases merely brought forward in time. No additional business growth. Yes another striking success!

[Felt 35]

Does "tax deduction" mean

1) an effective tax refund through the PAYE system?

2) a tax refund in the form of a cheque?

3) an increase in taxes from 1 Jan 2016 causing people to buy before the tax-inclusive price of goods increase? (I know this is the case for cars)

This is yet another article in the press here that leaves the reader confused.

The amount spent during the campaign becomes deductible from the amount on which you pay income tax.............

You spend 15.000 during the campaign:

Your income tax rate is 5% = You pay 750 less in tax

Your income tax rate is 10% = You pay 1500 less in tax

This campaign is simply deceiving the consumers who already have low spending power. With hardly 3million taxpayers in the country I can image who easily tok the bait.

[waldroj]

An estimate based on an assumption. AND, the government was satisfied with the result! 555

[AGareth2]

whereas the rice scheme was aimed at the poor

this one is aimed at the rich

oh well must keep the punters happy

[tbthailand]

or in other words, in the last week of the year, the junta just blew 33% of the annual subsidy for the 30 Bhat healthcare program (in 2009 which was the last year of figures in this report).

This tax incentive was a huge give-away by the military junta to the people they need to get out and vote for their turd/charter... wonder why they did that? Can't be vote-buying, because we all know they would never do that...

[rubl]

Does "tax deduction" mean

1) an effective tax refund through the PAYE system?

2) a tax refund in the form of a cheque?

3) an increase in taxes from 1 Jan 2016 causing people to buy before the tax-inclusive price of goods increase? (I know this is the case for cars)

This is yet another article in the press here that leaves the reader confused.

The amount spent during the campaign becomes deductible from the amount on which you pay income tax.............

You spend 15.000 during the campaign:

Your income tax rate is 5% = You pay 750 less in tax

Your income tax rate is 10% = You pay 1500 less in tax

Also I think this only applies to goods bought at shop which participated in the scheme and could issue 'certificates/receipts' which can be used in March when people file their form 91.

[rubl]

or in other words, in the last week of the year, the junta just blew 33% of the annual subsidy for the 30 Bhat healthcare program (in 2009 which was the last year of figures in this report).

This tax incentive was a huge give-away by the military junta to the people they need to get out and vote for their turd/charter... wonder why they did that? Can't be vote-buying, because we all know they would never do that...

Actually the public spent 15 billion Baht on this tax incentive scheme. The effect of deduction from other income/assets depends on the total amount of those. If only people who were in the upper tax bracket participated then this tax break will cost the government about 5 billion over tax receipts of the year 2015. As probably also less affluent people participated the effect will be even less.

Of course even 5 billion could be 33% of some other number in years long gone.

[halloween]

or in other words, in the last week of the year, the junta just blew 33% of the annual subsidy for the 30 Bhat healthcare program (in 2009 which was the last year of figures in this report).

This tax incentive was a huge give-away by the military junta to the people they need to get out and vote for their turd/charter... wonder why they did that? Can't be vote-buying, because we all know they would never do that...

3 Rs

Remedial Reading Recommended

[tbthailand]

the estimated costs of the junta's New Years Gifts to the Thai people has been estimated at (at least) 15 billion bhat...

remedial reading would be to learn a new pumpkin pie recipe....

[Briggsy]

Does "tax deduction" mean

1) an effective tax refund through the PAYE system?

2) a tax refund in the form of a cheque?

3) an increase in taxes from 1 Jan 2016 causing people to buy before the tax-inclusive price of goods increase? (I know this is the case for cars)

This is yet another article in the press here that leaves the reader confused.

The amount spent during the campaign becomes deductible from the amount on which you pay income tax.............

You spend 15.000 during the campaign:

Your income tax rate is 5% = You pay 750 less in tax

Your income tax rate is 10% = You pay 1500 less in tax

Thank you.

I missed that option off my list. See how confused I was! In the UK, this might be known as 'tax relief'.

Is it right that in a country of 70 million people, only 2 million pay income tax? Or is the article only referring to Bangkok's income taxpayers?

[rubl]

the estimated costs of the junta's New Years Gifts to the Thai people has been estimated at (at least) 15 billion bhat...

remedial reading would be to learn a new pumpkin pie recipe....

From the OP

"THE government estimates that more than Bt15 billion was spent in the last week of 2015, with a sudden rush of money outlaid on certain products and services because of a tax deduction."

So the maximum the government waives as taxes will be around 5 billion Baht. How much of that is already paid by tax payers is difficult to guess. Most salaried workers would have paid the expected amount of tax and can now look forward to a refund if they bought at a shop participating. Others may pay less in March because of a deduction.

Of course there is the possibility you added up all kind of government New Year gifts including reductions in parking fines and so. Still the estimate would be yours. Pray let us curious people know how you got to the (at least) 15 billion. Thanks

[halloween]

the estimated costs of the junta's New Years Gifts to the Thai people has been estimated at (at least) 15 billion bhat...

remedial reading would be to learn a new pumpkin pie recipe....

Remedial reading might help you realise that the government didn't spend the money, taxpayers did.

Economics 101 (a bit above your level) might help you realise that the boost in spending would raise others income, and prompt spending, and the nett tax loss would be minimal.

Edited January 4, 2016 by halloween

[tbthailand]

the estimated costs of the junta's New Years Gifts to the Thai people has been estimated at (at least) 15 billion bhat...

remedial reading would be to learn a new pumpkin pie recipe....

Remedial reading might help you realise that the government didn't spend the money, taxpayers did.

Economics 101 (a bit above your level) might help you realise that the boost in spending would raise others income, and prompt spending, and the nett tax loss would be minimal.

reading other news sources might help you realise that the government dumped loads of money (15 billion or more) on their key support groups in the final week of 2015.

I don't recall you ever making that same economic argument with the rice program... but in this case, the lost tax revenues are a huge give-away to people with means whereas putting the same money into properly funding the healthcare system would clearly improve the lives of a much poorer segment of Thai society.

Ask yourself why the military junta pushes populist spending to a group of people who are not Thai citizens who most need help but continues to float "co-payment and reform" trial balloons for the 30 Bhat health care system.

Or maybe your head has really been hollowed out for the holidays?

[rubl]

the estimated costs of the junta's New Years Gifts to the Thai people has been estimated at (at least) 15 billion bhat...

remedial reading would be to learn a new pumpkin pie recipe....

Remedial reading might help you realise that the government didn't spend the money, taxpayers did.

Economics 101 (a bit above your level) might help you realise that the boost in spending would raise others income, and prompt spending, and the nett tax loss would be minimal.

reading other news sources might help you realise that the government dumped loads of money (15 billion or more) on their key support groups in the final week of 2015.

I don't recall you ever making that same economic argument with the rice program... but in this case, the lost tax revenues are a huge give-away to people with means whereas putting the same money into properly funding the healthcare system would clearly improve the lives of a much poorer segment of Thai society.

Ask yourself why the military junta pushes populist spending to a group of people who are not Thai citizens who most need help but continues to float "co-payment and reform" trial balloons for the 30 Bhat health care system.

Or maybe your head has really been hollowed out for the holidays?

So, yes please, can you add up for us, or just for me? No way I get to 'loads of money' or 'huge give-aways'. Apart from the 500++ billion loss the previous government caused of course.

[halloween]

the estimated costs of the junta's New Years Gifts to the Thai people has been estimated at (at least) 15 billion bhat...

remedial reading would be to learn a new pumpkin pie recipe....

Remedial reading might help you realise that the government didn't spend the money, taxpayers did.

Economics 101 (a bit above your level) might help you realise that the boost in spending would raise others income, and prompt spending, and the nett tax loss would be minimal.

reading other news sources might help you realise that the government dumped loads of money (15 billion or more) on their key support groups in the final week of 2015.

I don't recall you ever making that same economic argument with the rice program... but in this case, the lost tax revenues are a huge give-away to people with means whereas putting the same money into properly funding the healthcare system would clearly improve the lives of a much poorer segment of Thai society.

Ask yourself why the military junta pushes populist spending to a group of people who are not Thai citizens who most need help but continues to float "co-payment and reform" trial balloons for the 30 Bhat health care system.

Or maybe your head has really been hollowed out for the holidays?

So you weren't referring to the B15 billion in the OP, it was another (unspecified) B15 billion that I should read about elsewhere, without links of course. CYA much?

Why would anyone except an economically illiterate moron equate an unspecified tax break to hundreds of billions of government loss. When have you ever said that the rice scam losses (you know HUNDREDS OF BILLIONS) might have been better spent on health care? I know I have stated many times that it could have been used for infrastructure (you know, like hospitals) that would have benefited the people more than a black hole in the budget and a pile of rotting rice.

Keep coughing up the BS TB, you are quite amusing.

Edited January 4, 2016 by halloween

[englishoak]

Anyone read up on this everyone earning under 30,000bht will not be stopped any tax ?

Read it in Thai but cant link here, dont think its likely to be true coming off sanook news or something but with this lot nothing would surprise me.

[halloween]

Anyone read up on this everyone earning under 30,000bht will not be stopped any tax ?

Read it in Thai but cant link here, dont think its likely to be true coming off sanook news or something but with this lot nothing would surprise me.

Thailand has quite a high income tax threshold, but VAT is widely applied.

[englishoak]

Anyone read up on this everyone earning under 30,000bht will not be stopped any tax ?

Read it in Thai but cant link here, dont think its likely to be true coming off sanook news or something but with this lot nothing would surprise me.

Thailand has quite a high income tax threshold, but VAT is widely applied.

Its on Voice TV, definitely some official in a suit talking about it.

its 20k at the moment i believe, a move to 30k would take a huge number currently doing as much OT as possible out of the lowest tax bracket.

Thats good for many but questionable Thailand can afford it, especially in the current climate. Where basic bread and butter tax revenues will come from to substitute i dont know, probably taxes on imports etc I suppose.

If they do this then its as populist as it gets but hardly surprising since the natives are getting pretty restless with this lot now and understandably so too.

[tbthailand]

the estimated costs of the junta's New Years Gifts to the Thai people has been estimated at (at least) 15 billion bhat...

remedial reading would be to learn a new pumpkin pie recipe....

Remedial reading might help you realise that the government didn't spend the money, taxpayers did.

Economics 101 (a bit above your level) might help you realise that the boost in spending would raise others income, and prompt spending, and the nett tax loss would be minimal.

reading other news sources might help you realise that the government dumped loads of money (15 billion or more) on their key support groups in the final week of 2015.

I don't recall you ever making that same economic argument with the rice program... but in this case, the lost tax revenues are a huge give-away to people with means whereas putting the same money into properly funding the healthcare system would clearly improve the lives of a much poorer segment of Thai society.

Ask yourself why the military junta pushes populist spending to a group of people who are not Thai citizens who most need help but continues to float "co-payment and reform" trial balloons for the 30 Bhat health care system.

Or maybe your head has really been hollowed out for the holidays?

So you weren't referring to the B15 billion in the OP, it was another (unspecified) B15 billion that I should read about elsewhere, without links of course. CYA much?

Why would anyone except an economically illiterate moron equate an unspecified tax break to hundreds of billions of government loss. When have you ever said that the rice scam losses (you know HUNDREDS OF BILLIONS) might have been better spent on health care? I know I have stated many times that it could have been used for infrastructure (you know, like hospitals) that would have benefited the people more than a black hole in the budget and a pile of rotting rice.

Keep coughing up the BS TB, you are quite amusing.

so you need to take your advice on remedial reading, mister pumpkin-head.

I never compared the two, I pointed out that I've never seen you use that argument before for things you don't agree with like the rice program. Only a literally illiterate moron could overlook that...

Got it?

But see that argument does actually apply to the rice program because it was the government infusing a huge amount of money into the economy. (remedial reading lesson 2 for you - that observation is not indicating support for the rice program... ) Now some people describe government spending as "losses". It was a huge give-away...

In this case, the government also gave away a huge amount of cash - 5 billion alone for this scheme and over 15 billion in total - targeting people who don't really need it but whom the junta needs to pass their constitutional turd when it comes up for a vote... it's a flagrant attempt to shore up their base...

BTW, on a pro-rated, annual basis, 15 billion in one week would be, in a single year, far more than the losses of several years of rice price supports. Now, RR lesson number 3, of course the junta did not do that, but it provides you with a clear perspective on the magnitude of their one week give-away...

really, you should fill that pumpkin with some grey matter...

[rubl]

Remedial reading might help you realise that the government didn't spend the money, taxpayers did.

Economics 101 (a bit above your level) might help you realise that the boost in spending would raise others income, and prompt spending, and the nett tax loss would be minimal.

reading other news sources might help you realise that the government dumped loads of money (15 billion or more) on their key support groups in the final week of 2015.

I don't recall you ever making that same economic argument with the rice program... but in this case, the lost tax revenues are a huge give-away to people with means whereas putting the same money into properly funding the healthcare system would clearly improve the lives of a much poorer segment of Thai society.

Ask yourself why the military junta pushes populist spending to a group of people who are not Thai citizens who most need help but continues to float "co-payment and reform" trial balloons for the 30 Bhat health care system.

Or maybe your head has really been hollowed out for the holidays?

So you weren't referring to the B15 billion in the OP, it was another (unspecified) B15 billion that I should read about elsewhere, without links of course. CYA much?

Why would anyone except an economically illiterate moron equate an unspecified tax break to hundreds of billions of government loss. When have you ever said that the rice scam losses (you know HUNDREDS OF BILLIONS) might have been better spent on health care? I know I have stated many times that it could have been used for infrastructure (you know, like hospitals) that would have benefited the people more than a black hole in the budget and a pile of rotting rice.

Keep coughing up the BS TB, you are quite amusing.

so you need to take your advice on remedial reading, mister pumpkin-head.

I never compared the two, I pointed out that I've never seen you use that argument before for things you don't agree with like the rice program. Only a literally illiterate moron could overlook that...

Got it?

But see that argument does actually apply to the rice program because it was the government infusing a huge amount of money into the economy. (remedial reading lesson 2 for you - that observation is not indicating support for the rice program... ) Now some people describe government spending as "losses". It was a huge give-away...

In this case, the government also gave away a huge amount of cash - 5 billion alone for this scheme and over 15 billion in total - targeting people who don't really need it but whom the junta needs to pass their constitutional turd when it comes up for a vote... it's a flagrant attempt to shore up their base...

BTW, on a pro-rated, annual basis, 15 billion in one week would be, in a single year, far more than the losses of several years of rice price supports. Now, RR lesson number 3, of course the junta did not do that, but it provides you with a clear perspective on the magnitude of their one week give-away...

really, you should fill that pumpkin with some grey matter...

Oh yes, if the Thai population would spent 15 billion extra every week that would add up in a year.

Still this was a one-time tax deduction which will costs about 5 billion Baht. that's 11% of what the government spent in 2009 on the Thaksin 30 Baht Healthcare Scheme. That is indeed absurd. The previous government managed to lose 500++ billion Baht on a single 'self-financing' scam. That's 1100% of what the government spent in 2009 on the Thaksin 30 Baht Healthcare Scheme. Even with inflation that type of money would have lasted the scheme till 2021 or so.