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Thai govt to provide tax discount for EDC installed shops

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Gov’t to provide tax discount for EDC installed shops

  

BANGKOK, 2 November 2016 (NNT) – The Cabinet has approved a scheme to provide tax discount for companies investing in the installation of EDC payment terminals in an attempt to promote E-Payment nationwide, says PMO official. 

The Vice Minister at the Prime Minister’s Office Kobsak Pootrakool has revealed that the government will be providing assistance to companies and individual entrepreneurs nationwide who wish to install the EDC card payment terminals, with the introduction of an income tax reduction program. 

Actual spendings on the EDC systems installation can be calculated at a doublet rate, deducting the payable amount of income tax. This offer is only valid for the installation of new terminals. 

The scheme will also allow shops and companies to take the Merchant Discount Rate fees collected from card transactions as another tax reduction article, twice as much as the actual rate, reducing operational cost of the shops for payments made by debit cards. 

The PMO Vice Minister has said these measures from the government are aimed to popularize debit card transactions among the general public, and help increase EDC terminals installations at small shops with an installation cost relief scheme. 

“This reform was planned as a renewal to the nation’s payment foundation which promotes better availability of EDC terminals across the country,” Vice Minister Kobsak said.

 
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-- nnt 2016-11-02

Very clever. I suspect that this is all about tax collection rather than caring for people and offering a tax discount to "promote E-payment". Many small businesses understate / don't pay tax, but E-payment will force them to.

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