Thailand
Thailand: Aid measures to seek cabinet nod
A seven-month excise tax cut for jet fuel for domestic flights of local airlines, tax breaks for business operators that hold seminars in provinces and hospitality operators that renovate their properties, and a deadline extension for personal income tax return filing will go before the cabinet on Tuesday.
The Finance Ministry will propose the new stimulus package to the cabinet, including the jet fuel excise tax reduction to 20 satang per litre until the end of September from the current 4.762 baht, said a source at the ministry who requested anonymity.
The tax cut will apply only to domestic flights of local airlines to alleviate the impact from the novel coronavirus outbreak, said the source.
“The tax reduction is to help the aviation industry and boost demand for domestic travel,” the source said.
“The excise tax on fuel will not be granted to bus tour operators, which are charged 5-6 baht a litre, though they requested such a cut.”
The Excise Department increased the jet fuel excise tax from 20 satang per litre, which was the rate for 24 years, to 4.726 baht per litre in 2017, raising airline operators’ tax-related costs by an estimated 23%.
Under the fresh stimulus measures, business operators will be allowed to deduct double the expenses incurred from organising seminars in provincial areas from corporate income tax to boost domestic travel.
Hospitality operators will be able to deduct expenses for renovations from income tax at 1.5 times, said the source. Expenses incurred from holding seminars and renovation until the end of this year will be eligible for the tax deduction.
Tourism-related operators will also be eligible to seek low-rate loans worth 100 billion baht in total from specialised financial institutions as working capital and for refurbishment.
The new package and the Tourism and Sports Ministry’s plan to seek new markets are estimated to help offset the impact from the sharp decline in Chinese tourists by around 50-60 billion baht, the source said.
The Tourism Authority of Thailand earlier estimated Thailand will lose tourism revenue of 95 billion baht from the epidemic.
Source: https://www.bangkokpost.com/business/1850039/aid-measures-to-seek-cabinet-nod