Tax incentive tipped to spur Bt20 billion in retail spending
THE government’s tax break for year-end shopping, approved by Cabinet Tuesday, is expected to generate extra spending of Bt20 billion in the retail sector, on top of earlier tax incentives for domestic tourism aimed at boosting the sluggish economy, according to Tourism and Sports Minister Kobkarn Wattanavarangkun.
Kobkarn said tourists were among the biggest shoppers for gifts during the holiday season, so the tax incentive, effective from December 14-31, should give a powerful boost to both tourism and retail spending in this period.
For those living in Thailand, each person is entitled to get a tax refund on shopping expenses of up to Bt15,000 based on his or her income tax rate. But the tax incentive does not apply for alcoholic beverages, cars, motorcyles, boats or fuel.
Earlier, the government also approved tax incentives for domestic tourism, which allow travellers to get a tax refund on travel costs of up to Bt30,000 per person – covering airline and other transport, hotel rooms and other expenses. These measures are intended to help revitalise the economy as the export sector, which accounts for 70 per cent of Thai GDP, has been hit by global economic uncertainties.