Thailand approves more stimulus measures to boost economy

[BANGKOK] Thailand on Tuesday approved a new package of economic stimulus measures including tax breaks for shoppers, as it looks to revive an economy struggling with the pandemic-induced collapse of its vital tourism sector.

Southeast Asia's second-largest economy is expected to expand 4 per cent next year after just 1 per cent predicted for this year, Finance Minister Arkhom Termpittayapaisith said at a news conference, detailing the new measures.

The economy will be helped by domestic consumption, exports, government spending and economic measures, he said.

Among the measures approved on Tuesday, the government will offer shoppers a tax deduction of up to 30,000 baht (S$1,216.84) per person on their goods purchased between Jan 1 and Feb 15, which is expected to help stimulate spending of 42 billion baht.

A fourth phase of a co-payment scheme to stimulate spending on goods is also planned for March-April next year, the finance minister said.

"Industrial workers are now back to work and purchasing power is better, so government measures can't be used forever, just as necessary," he said.

The Cabinet also agreed to extend a cut in some property transfer fees to 0.01 per cent until the end of next year.

Pornchai Theeravet, head of the ministry's fiscal policy office, said the stimulus measures were expected to lift economic growth by 0.7 percentage points in the first quarter.

REUTERS