THAILAND’S Cabinet has approved a tax cut on alcoholic beverages and entertainment venues to boost tourism, a government spokesperson said on Tuesday (Jan 2).

Taxes on wine will be reduced from 10 per cent to 5 per cent and on spirits from 10 per cent to zero, Chai Wacharonke told reporters, adding that excise tax on entertainment venues will be halved from 10 per cent to 5 per cent.

The tax measures will expire at the end of this year, he said.

The announcement comes after authorities in November extended opening hours for entertainment venues by two hours to 4am for nighttime revellers and tourists.

Tax revenue losses would be offset by additional tourist receipts, Finance Ministry Permanent Secretary Lavaron Sangsnit said in a separate briefing.

Tourism is a key driver of South-east Asia’s second-largest economy. Last year, Thailand reached its target of 28 million tourists, generating 1.2 trillion baht (S$46.4 billion), government data showed.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

In 2024, it is targeting more than 34 million tourist arrivals, Lavaron said. REUTERS