Government mulls tax incentive for buyers of OTOP products



BANGKOK: -- Deputy Prime Minister Somkid Jatusripitak has floated the idea of giving tax incentive to buyers of community-based Otop products.

He said that the government is mulling how to encourage foreign tourists and Thais to buy Otop products produced by villagers in communities as a means to promote Otop products and, at the same time, promote tourism in communities.

One of the ways being explored is that buyers who purchase Otop products can use the receipts to claim tax deductions and this may encourage more people to buy more Otop products, said Mr Somkid, however, adding that the government will consider how this can be translated into action.

Despite political uncertainty, the deputy prime minister pointed out that tourism is booming, reflecting the notion that Thailand is the “chaotic beauty” magnet for tourists.

“If the number of tourists is equal to X and if you want to earn more from them you must make them stay longer. If you light up a walking street to let them walk at night, they will increase their spending and farang love Otop products,” said Mr Somkid.

Source: http://englishnews.thaipbs.or.th/content/151883


-- Thai PBS 2016-02-23

Create a pedestrian space like "La Rambla" in Barcellona,

popular with tourists and local alike. Allow both Thai and foreign

artists from all over the world to perform. Let visitors see, experience and enjoy

one of the most diverse and entertaining places around. Create a space where

people will keep coming back, a place crowded every day until the wee hours.

Sell OTOP products and many more meanwhile.

If the products are quality and well priced they will sell themselves. Any such OTOP projects out there or is it all decorative lamps made out of coconut shells?

OTOP. Yes the great idea of Thaksin. Guess this means they think there's potential for skimming and kickbacks

Receipts??

From the products I see being advertised as OTOP products in markets they are more like items you might find in a grocery store or a flea/open market/fair....just the everyday vendor trying to scrap out a living selling low cost products. I can't see most OTOP vendors providing receipts and definitely not the more detailed receipts to obtain a VAT refund at the airport by a foreign tourist.

For a domestic tourist the number of Thais who file income tax returns and would be able to claim some small OTOP deduction is small....most Thais do not file personal income tax returns.

This program might sound good on the surface and the govt probably hopes it fools OTOP vendors into thinking the govt is implementing a great program for them, but I doubt it would make much of a difference in improving OTOP vendor sales.

Not sure if it would make much of difference to those exporters/wholesalers/large stores who might buy large quantities of OTOP products for export or resale within Thailand because unless their end sales increase there would be no reason to buy more OTOP products. If the program would also be applicable to wholesalers/exporters/large stores, I'm sure exporters/wholesales/large stores will gladly take an tax incentive as it would increase their profits, but that don't put any more money in the OTOP vendors pockets.

This has nothing to do with tax incentive to buyers - this is so the Government can bring in more unregistered small Thai businesses into the tax regime.

They are indeed trying different worms on the fishng hook in trying to get small businesses and people to enter the tax system. I don't think they are getting many bites...only nibbles.