Connect with us

Banking

Thai Government offers Tax break, Cash handouts to fuel economy

The Thai government hopes a move to spark a shopping spree by offering tax breaks and cash handouts at the end of the year will improve economic stimulus in the fourth quarter

Published

on

The Thai government hopes a move to spark a shopping spree by offering tax breaks and cash handouts at the end of the year will improve economic stimulus in the fourth quarter.

The cabinet approved a tax break for shopping spending or spending on services during the festive season between December 14-31.

Bank of Thailand Governor Veerathai Santiprabhob said the tax breaks would be a smart short-term stimulus measure before major government projects were launched next year.

The tax break means that taxpayers can deduct up to 15,000 baht from their taxable incomes so that they will pay less income taxes.

As such, they will have saved from 750 baht up to 5,250 baht in taxes for the 15,000 baht shopping spending, depending on their taxable incomes.

Veerathai said temporary factors affecting economic activities were lower agricultural prices, mainly rice, the crackdown on zero-dollar tours resulting in the decline in Chinese tourists and the mourning period for His Majesty the King.

The government needs a short- term stimulus measure to fuel |economic growth in the fourth quarter, he said.

The tax breaks should be a short- term tool because boosting spending will impact on future domestic demand, he said.

There is also a remedial measure to spur economic growth, with the government handing out Bt12.5 billion to the poor, or between Bt1,500 and Bt3,000 each person.

Mr Kobsak Phutrakul, assistant minister to the Prime Minister’s Office, said the government expected that the tax break would help boost spending during the festive season before year end.

No booze please

Shopping spending for the following items will not be eligible to tax break namely liquor, beer, tobacco, fuel oil and gas for vehicles and vessels.

Mr Kobsak said the measure would cost the government about 3.2 billion baht in revenue loss, but, on the other hand, would generate about 20 billion baht in circulation in the economic system or 0.2 percent of the GDP.

On top of that, the assistant minister to the Prime Minister’s Office claimed that the tax break would boost job creation and production until early next year.

Moreover, he said that the measure would encourage business operators to enter tax system which, in the long run, will benefit the government’s revenue collection in the future

Giving cash handouts to low income-earners

Three state-owned banks have started giving one-time cash handouts ranging from 1,500-3,000 baht to low income-earners in agriculture and non-farming sectors.

Government spokesman Lt-Gen Sansern Kaewkamnerd said over the weekend that he expected the payments to the qualified recipients to be completed before the year-end as New Year’s gift from the government.

He disclosed that there are altogether 6,981,000 qualified low income-earners who are eligible to receive the cash handouts to be wired directly into their bank accounts by the three banks, namely Krung Thai, Government Savings and Bank of Agriculture and Agricultural Cooperatives.

Those who earn less than 30,000 baht a year will receive 3,000 baht while those earn more than 30,000 baht but not exceeding 100,000 baht will get 1,500 baht. These one-time cash handouts are applicable for those in agricultural and non-agricultural sectors.

Source: Tax break on goods needed to fuel economy, says BOT chief 

Click to comment

Leave a Reply

Banking

The Importance of E-Wallets for Online Gaming Sites

With e-wallets and cryptocurrency being the most relevant options, banks have been put on the side burner, especially when e-wallets and cryptocurrency allow for fast electronic transfer, that is done instantly.

Published

on

e-wallet

Online gambling is an industry that needs to keep up with technological trends, to make sure it stays relevant and convenient within the gambling community.

(more…)
Continue Reading

Banking

Thai Government to issue Bt50 bln ( $1.57 bln)Savings Bonds to fund COVID-19 Relief Measures

The special savings bonds are available via the “Sasom Bond Mung Kung” e-wallet, abbreviated to “Sor Bor Mor” in Thai on Krungthai Bank’s Pao Tang mobile app, and through four dealer banks. The minimum purchase of these bonds is 1,000 baht, without no maximum. Interest is paid twice a year.

Published

on

BANGKOK (NNT) – Thailand’s Public Debt Management Office (PDMO) plans to issue “Ying Aom Ying Dai” (the more you save, the more you earn) government savings bonds, worth 50 billion baht, next month, aiming to use the funds to finance state projects to ease the impacts of the pandemic.

(more…)
Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,160 other subscribers

Wise

Recent