"Finance Ministry" Proposes Tax Deductions for Purchases Up to 50,000 Baht/Person to Stimulate Consumption; Private Sector Urges New Finance Minister to Accelerate Economic Stimulus Plans

The COVID-19 pandemic has severely impacted tourism, leading to efforts to reopen the country to foreign tourists and businesspeople. Relevant agencies will present to the Economic Situation Management Center (ESMC), chaired by Prime Minister Gen. Prayuth Chan-o-cha, today (October 7) to consider additional economic stimulus measures.

Sources from the Ministry of Finance stated that the ministry will propose further measures to stimulate domestic consumption, following previous initiatives such as the half-price campaign and an additional monthly 500 Baht welfare payment for state welfare cardholders.

The measures proposed for ESMC's consideration this time aim to support taxpayer spending, targeting middle-income and upper-middle-income individuals for purchasing goods and receiving tax deductions, similar to the "Shop for the Nation" program.

This will increase the tax deduction limit from the previous maximum of 15,000 Baht to a maximum of 50,000 Baht, encouraging income earners with purchasing power to spend on goods during the fourth quarter of this year.

Ms. Kanya Phak Tantipipatanapong, President of the Thai National Shippers' Council (TNSC), revealed that for the new Finance Minister, Mr. Arkhom Termpittayapaisith, the TNSC wants him to focus on and expedite measures for relief, recovery, and economic stimulation affected by the COVID-19 pandemic, ensuring that assistance reaches all levels effectively.

Particularly at the grassroots level, as it must be acknowledged that previous assistance measures have not adequately covered all groups.

Additionally, there is a need for budget management to utilize existing limited funds effectively, ensuring that new measures provide maximum benefits. It is believed that borrowing additional funds for spending could accelerate economic recovery, and there should be no concerns about borrowing. There is also a desire to reduce the procedures for currency exchange costs in the export sector, as some laws are outdated, and discussions on this matter have been ongoing for a long time without visible changes.

SOURCE: www.bangkokbiznews.com