Thailand approves tax break to boost public consumption
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THAILAND’S cabinet on Tuesday (Dec 20) approved tax measures to help boost public consumption to support the economy as it recovers, the finance minister said.
The tax measures include a tax deduction of 40,000 baht (S$1,555.7) for shoppers on goods purchases from Jan 1 to Feb 15, Finance Minister Arkhom Termpittayapaisith told a news conference.
Land and property tax was cut by 15 per cent with some registration fees reduced for 2023, while the tax on jet fuel was lowered to 0.20 baht per litre from 4.726 baht for six months from January, he said.
“We will lose some revenue, but these measures will help support the economy,” he said.
The tax breaks are estimated to cost the government 18.7 billion baht in lost revenue, but would help boost spending next year and should increase gross domestic product by 0.76 per cent, Arkhom said.
The tax measures, together with the ministry’s other support programmes such as loans, should increase liquidity, spending and investment by 279 billion baht, he added.
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Tuesday’s moves follow a series of earlier stimulus measures aimed at supporting South-east Asia’s second-largest economy. Its growth has lagged behind others in the region, with the crucial tourism sector only starting to rebound this year.
Last year’s economic growth of 1.5 per cent was among the slowest in the region.
The central bank said on Monday the economy was expected to fully recover in the second half of 2023. It has forecast the economy will expand 3.2 per cent this year, 3.7 per cent in 2023 and 3.9 per cent in 2024. REUTERS
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