Govt outlines more economic stimulus measures

During Tuesday’s cabinet meeting, Prime Minister Srettha Thavisin tasked the Finance and Labour ministers to come up with measures to urgently boost Thailand’s economy and support the industrial sector in the second half of the year.

These measures are partly in response to a slumping manufacturing index that has resulted in some factories shutting down, according to government spokesperson Chai Wacharonke.

Chai said the premier’s order focuses on using financial and tax measures to help affected entrepreneurs and workers. Finance Minister Pichai Chunhavajira and Labour Minister Pipat Ratchakitprakarn were told to report progress to the next cabinet meeting.

Srettha also ordered related agencies to follow up on the progress of the plan to open legal entertainment complexes in Thailand to boost tourism and the local economy. Deputy Finance Minister Julapun Amornvivat was tasked with heading the feasibility study and facilitating the establishment of such complexes.

Chai said that during the meeting, the Transport Ministry presented the result of a market-sounding seminar for the government’s Land Bridge project to be built in Ranong and Chumphon provinces.

The seminar, which was held on May 30, was attended by more than 100 Thai and foreign companies who showed interest in investing in the 1-trillion-baht project that will serve as a link between the Pacific and Indian oceans and ease shipping congestion in the Malacca Straits, the ministry said.

It added that the draft of the Southern Economic Corridor Act, which covers legal requirements, conditions, and privileges for investors in the project, is expected to be complete before the bidding process starts in the fourth quarter of 2025.

Chai added that the cabinet also approved additional expenditure of 122 billion baht in fiscal 2024 as the central budget for stimulating and strengthening the economy. Part of this budget will be used to fund the government’s digital wallet scheme, which aims to hand out 10,000-baht digital money to eligible Thais aged over 16 years starting in the 4th quarter, he said. 

The cabinet also approved the move to promote tourism during the low season by providing tax benefits to tourists and entrepreneurs. This policy is expected to cost the government some 1.78 billion baht in tax revenue but will boost the tourism industry and domestic spending especially in second-tier provinces, said Chai.

Deputy Finance Minister Paopoom Rojanasakul explained that the low-season tourism promotion campaign will offer two tax benefits. The first is up to a 15,000-baht tax rebate for individuals on their spending at a hotel or for guide tour services in second-tier tourism provinces. The second allows businesses to deduct expenses for seminars, rooms, transport and other services from their taxable income when organising seminars or employee training at domestic hotels.

Business expenses incurred at hotels in second-tier tourism provinces will receive a rebate of twice the corporate tax amount. In other provinces, they can deduct 1.5 times the amount spent.