The cabinet on Tuesday approved tax break for shopping spending or spending on services during the festive season between December 14-31.
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.
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 yearend.
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. Morever, 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.
Source: Thai Public Broadcasting Service (Thai PBS)