‘Tax breaks’ for EDC installation
THE FINANCE Ministry will seek from the Cabinet tax incentives for merchants who invest in electronic data capture (EDC) in order to encourage quick progress towards a cashless society.
Finance Minister Apisak Tantivoravong said yesterday that under the tax incentive proposal to the Cabinet, the ministry would allow merchants who install EDC to claim double tax deduction. The merchants can also ask for tax deduction for the EDC fees to the banks.
EDC installation is the second stage of the national e-payment plan, under which both small merchants and state agencies will have to install EDC so as to accept debit cards from consumers.
However, the EDC installation has been delayed to the first quarter of next year from the previously scheduled end of this year due to delay in implementing PromptPay, the first stage of national e-payment plan to early next year from October 31 this year.
The minister said that the lucky draw rewards for merchants who had already installed the EDC would also be postponed to April 1 next year.
The Finance Ministry has told the Revenue Department to study a single tax refund account for merchants as there was duplication in withholding tax and value-added tax refunds. Having a single tax-refund account will give merchants more time to claim tax refunds and help save time and cost for both merchants and the government.
Commercial banks and the Bank of Thailand want to ensure that money transfer via PromptPay will be more efficient, hence they have to postpone the implementation. However, tax refund to taxpayers who have registered for PromptPay with banks will be implemented as planned, he said.
Even money transfer from PromptPay will be delayed to the early next year. The minister assured that low-income earners who have registered with the government would receive social welfare this December.
The Revenue Department insisted that implementation of tax refund, e-withholding tax, and e-invoice would proceed as planned.
There are 8.4 million low-income earners registered with the government to receive social welfare via PromptPay. The ministry has finished verification and found that around 7.8 million are eligible to receive social welfare, he said.
Registered low-income earners can use electronic tickets in public buses and trains in the next 1-2 years. The government believes this will help cut the fiscal subsidy for public bus and train travel as the government is now aware who should be eligible for social welfare, said Apisak.
