To encourage taxpayers to go all out with their spending during the Songkran festival, the government plans to bring back a tax deduction scheme that previously boosted local spending in December.
Finance Minister Apisak Tantivorawong said the ministry plans to allow taxpayers a deduction for two weeks during Songkran when they spend money on dining and traveling inside the country.
“The measure is to encourage Thais to travel within the country because many Thai people spend the long holiday abroad. Songkran is a family day, and the government wants Thai people to stay in the country and take their family out to eat and travel,” Apisak said.
The government has not yet finalized the details of its tax deduction plan as it will be submitted to the cabinet for approval in the upcoming weeks.
In December, the junta rolled out a scheme which allowed a tax deduction of up to THB15,000 on purchases made during the New Year’s holiday, which cost the state a total of THB4 billion, although they were able to collect more VAT from businesses.
Apisak added the measure will also encourage businesses to legally register in the VAT system, so that they can benefit from the state policy, Matichon reported.
