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Thailand: Shopping handout measures underway
The Finance Ministry is preparing to roll out a tax rebate and cash handout incentives to shore up consumer spending.
The two measures will be implemented to entice consumer spending, with the format adjusted from the “Taste, Shop, Spend” and “Shopping for the Nation” schemes, with the core focus to stimulate taxpayer spending through tax rebates and financial aid, said Krisada Chinavicharana, the finance permanent secretary.
Details of the measures will be announced by the Fiscal Policy Office (FPO), said Mr Krisada.
The stimulus measures will also be given new names, he said.
The Taste, Shop, Spend scheme, started in 2019, was an effort to boost consumption and tourism as 10 million Thais were entitled to 1,000 baht to spend via the Pao Tang app and a 15% rebate.
For Shopping for the Nation, the campaign provided incentives allowing taxpayers to deduct up to 15,000 baht spent on certain goods and services from Dec 15-31, 2015 from their personal income tax.
The FPO discussed the move with Deputy Prime Minister Supattanapong Punmeechaow last Friday.
If approved, the Finance Ministry would forward the measures for consideration by the Center for Economic Situation Administration tomorrow.
The measures will be forwarded for cabinet approval next week if the initial process goes according to plan.
Separately, Lavaron Sangsnit, director-general at the Excise Department, said the main task of administering the government’s second largest taxation department is to increase the efficiency of tax collection and to adopt greater use of digitisation in the tax collection process.
Raising tax rates cannot happen during this crisis, but the Excise Department, which oversees taxes collected from luxury goods, alcohol, tobacco and goods that affect the environment, has a way to optimise its tax revenue, said Mr Lavaron.
The department is studying how a tax on salty and processed foods will be collected, along with taxing 0% on alcohol beverages.
For the first 11 months of fiscal 2020, the Excise Department registered tax revenue worth 543 billion baht, a tally close to the 546-billion target.
The top five products generating tax revenue for the department were petroleum and petroleum-related products, cars, beer, alcohol and tobacco.
The FPO adjusted the Excise Department’s tax revenue target for fiscal 2021 to 530 billion baht from 630 billion, with monthly revenue collection of 40 billion expected.
Source: https://www.bangkokpost.com/business/1997123/shopping-handout-measures-underway