In a bid to boost domestic consumption, the Center for Economic Situation Administration (CESA) has approved a proposal to offer taxpayers income tax deductions of up to THB 30,000 (USD 960) from their total taxable income.
The tax deduction offer will apply to the 2020 tax year and is projected to inject THB 120 billion (USD 3.8 billion) into the economy according to the National Economic and Social Development Council. All types of products and services with VAT will be included in the tax deduction program, except for alcoholic beverages, tobacco products, government lotteries, fuel, accommodation services, and air tickets.
However, only citizens who have not signed up for two other existing consumption boosting programs are eligible for this tax deduction program. The other programs in place are the three-month living allowances worth THB 1,500 (USD 48) for holders of the state welfare card, and the government’s offer to pay half the amount an individual spends on consumer products, for no more than THB 3,000 (USD 96) per person in three months.
Thailand’s Deputy Prime Minister said the government plans to inject THB 63 billion (USD 2 billion) through these three programs and expects to see up to THB 200 billion (USD 6.4 billion) circulating in the economy over the last quarter of 2020.
(Source: The Bangkok Post)