People shop for books qualified for tax rebates in 2018. The tax incentive scheme for shoppers will return this month. (Photo: https://www.bangkokpost.com/)Bangkok (VNA) – The Thai cabinet on October 12approved tax incentives to boost domestic consumption in a bid to revive aneconomy struggling with impacts of the COVID-19 pandemic.
Local media quoted Prime Minister PrayutChan-o-cha as saying that the government will offer a tax deduction of up to30,000 THB (nearly 1,000 USD) per person on purchases of goods and services.
Effective from October 23 until December 31, thetax deduction offer will apply to the 2020 tax year and to products andservices with a 7-percent value-added tax (VAT).
About 4 million people are expected to benefitfrom the programme, which is forecast to inject about 120 billion THB into thecountry's economy.
However, it will also cost the state about 12billion THB in missing tax revenue.
Danucha Pichayanan, deputy secretary-general ofthe National Economic and Social Development Council, said all types ofproducts and services with VAT will be included in the tax deduction programme,except for alcoholic beverages, tobacco products, government lotteries, fuel,accommodation services and air tickets.
Though Thailand has been relatively successfulin curbing the COVID-19 outbreak and most of economic activities have resumed,its central bank believes that it may take at least two years for the economyto return to the pre-pandemic levels.
The Bank of Thailand predicted an economiccontraction of 7.8 percent for the country this year./.
VNA
