Finance to table 15,000 baht shopping tax break for approval today

 

 

BANGKOK: -- The Ministry of Finance today proposed a tax break of 15,000 baht per person in the ‘Shop for the Country’ campaign for the cabinet to approve today.

 

The shopping tax break is one of several financial measures it agreed to roll out to stimulate consumption in order to spur economy.

User this measure, consumers will be given tax breaks for purchases made from December 15-31.

 

It said the ‘Shop for the Country’ campaign is aimed at stimulating consumer spending in the period leading to year-end.

 

Full story: http://englishnews.thaipbs.or.th/finance-to-table-15000-baht-shopping-tax-break-for-approval-today/

 

-- © Copyright Thai PBS 2016-12-07

Quote

Under the plan consumers will be given a maximum tax deduction not exceeding 15,000 baht per person and even though this will mean that the government will be losing approximately 5 billion baht in tax income, this will be offset by an increase in Value Added Tax (VAT) of between 6 to 7 billion baht.

Hope they took into account that lots of the products bought for the tax reduction would have been bought anyways.

 

I am postponing buying a new smartphone for 2 months already as I was waiting for the VAT reduction. 

It is not that my consumption increases, it just moves from October, November, and January all to December to make full use of the discount.

I suppose all of us wealthy, high spending consumers on TV will not be able to profit from the is deal?

I go home twice a year with my missus. The only things I really buy here are food from supermarket and heavy electrical appliances. Stuff like clothes, vitamins, bathroom products and phones, etc, I buy in the UK. Sometimes I can't be bothered to wait but my missus forces me by reminding me it's much better value in the UK. It's true. 

3 hours ago, webfact said:

Finance to table 15,000 baht shopping tax break for approval today

 

In other words, trash the TAX on XXXX-pired out of date goods in disguise,...... wanna bet?

The economy must be really going way downhill pretty fast if measures like this are even thought about !

Implementing them is just like saying the economy came to a full stop !!!

 

... or maybe the Government has just too much money [taken from the taxpayer] and such a big heart  [or .... they simply have no clue]

New Years is a big thing I think for a lot of Thais.  This is when they go home to relatives.  I would imagine that it is also a time that they buy a lot of stuff for the relatives back home.  That and remember that they all get a year end bonus that they can either save or if the government entices them spend.

 

This tax is not so much good for the economy as it is for VISA AND MC.  It is Thai Christmas LOL

This is called scraping the bottom of the barrel.

Why would they want to stimulate the economy with this "30 million tourists and counting arriving" something not right here.

Edited December 7, 20169 yr by nong38

This in turn, will have a positive impact on the GDP of the country.

 

Call that a miniscule impact if it can even be measured - which I doubt. Private and government spending account for about 20% GDP revenues; tourism is now about 11% and the balance to exports. If a net VAT revenue increase really happens from this tax break, I doubt it will even register as an increase in GDP. Just ridiculous speculation that is gambling the economic security of the nation for the sake of keeping appearances of well run economy. 

 

For the sake of argument, let's say that a 15,000 baht tax break generates a 0.1% increase in GDP. Then a 500,000 baht tax break to generate about 3.3% in GDP. That would amount to only about 1/3 the annual GDP revenues generated by tourism. Eliminate taxes completely and see the GDP soar with such economic expectations!