English
Thailand: Baby-making tax breaks aim to slow population ageing
The government has given reluctant parents a big push in the form of generous tax breaks aimed at encouraging them to have more than one child.
Nathporn Jatusripitak, the spokesman for Deputy Prime Minister Somkid Jatusripitak, said on Tuesday the cabinet had approved three tax deductions to lure couples to have more babies.
They will take effect this year and taxpayers can take advantage of them when they file personal income tax next calendar year, he added.
Key to the incentives is the tax deduction for child care from the second child onward at 60,000 baht each. Currently, each child, starting from the first child, gets a 30,000-baht deduction.
Parents will also be allowed a deduction for prenatal care and delivery cost up to 60,000 baht a year.
The Finance Ministry expects to lose 2.5 billion baht from the tax measures.
Private companies are encouraged to build nurseries or child care centres in their compounds for their employees’ children. They will be allowed to deduct as expenses 200% of the actual construction costs but not more than 1 million baht.
The government expects to lose 20 million baht a year from the offer.
The fights to slow down the ageing society comes amid worries by several agencies and think-tanks that Thailand will lose competitive edges to other countries due to depleting workforces.
The National Economic and Social Development Board projects the ageing group to account for almost one in three people in 2036.
Thailand is not alone in a war to make the society younger. Singapore has introduced the parenthood tax rebate to encourage Singaporeans to have more babies.
Source: https://www.bangkokpost.com/business/news/1396854/baby-making-tax-breaks-aim-to-slow-population-ageing