Mr. Laworn Saengsanit Director of the Fiscal Policy Office and Spokesperson for the Ministry of Finance stated that the Cabinet made a resolution on February 4, 2020, approving financial measures to mitigate the impact on the tourism sector for the year 2020 as proposed by the Ministry of Finance. The key points are as follows: the financial measures aim to alleviate the impact on the tourism sector in 2020 due to the outbreak of the novel coronavirus and uncertainties from external factors caused by international trade conflicts, which include tax measures and financial measures, detailed as follows:

  1. Tax Measures
  • Extension of the deadline for filing and paying personal income tax for individuals required to file personal income tax returns (Form ภ.ง.ด. 90 and Form ภ.ง.ด. 91) originally due in March 2020, now extended to June 2020.
  • Tax measures to support domestic training seminars, allowing companies or corporate partnerships to deduct expenses incurred for seminar rooms, accommodation, transportation, or other expenses related to domestic training seminars held for employees, or expenses paid to tour operators under the Tourism Business and Guide Act for domestic training seminars from January 1, 2020, to December 31, 2020, at double the actual expenses incurred.
  • Tax measures to support hotel business improvements, allowing companies or corporate partnerships operating hotels under the Hotel Act to deduct expenses equal to the amount spent on renovations, alterations, expansions, or improvements to assets related to the business from January 1, 2020, to December 31, 2020, at five times the actual expenses incurred.
  • Reduction of excise tax rates for jet fuel, lowering the excise tax on aviation fuel used for domestic flights from 726 baht per liter to 0.20 baht per liter until September 30, 2020.
  1. Financial Measures

State financial institutions have implemented low-interest loan measures with relaxed conditions and extended repayment periods and fees to provide liquidity and improve operations for tourism operators and related businesses affected by the coronavirus situation, including alleviating the burden on operators during this challenging time as follows:

Measures for extending repayment periods and fees include:

  • Government Savings Bank extends the repayment period to twice the remaining period under the contract, not exceeding 5 years.
  • Small and Medium Enterprise Development Bank of Thailand suspends principal repayments for long-term loans with a remaining balance of no more than 5 million baht for 6 months, provided there is a good repayment history for at least 6 months prior to joining the program and not in default.
  • Bank for Agriculture and Agricultural Cooperatives allows postponement of repayments for up to 12 months at a time, not exceeding 5 times, or restructuring of debts with an extension of repayment periods for up to 20 years.
  • Government Housing Bank reduces loan interest rates and repayment periods for up to 6 months, charging an interest rate of 1% per year for affected clients, such as tour guides, hotel staff, and small vendors in tourist areas.
  • Small Industry Credit Guarantee Corporation suspends guarantee fees for 12 months for clients in the tourism service, restaurant, and accommodation sectors affected by the situation.
  • Low-interest loans with relaxed conditions from Government Savings Bank, Small and Medium Enterprise Development Bank of Thailand, and Krung Thai Bank Public Company Limited, with a total budget of 123 billion baht and an initial interest rate of 3% per year.

       The Ministry of Finance expects that these financial measures will help stimulate the tourism sector in 2020 during the impact of the novel coronavirus situation, enhancing liquidity and alleviating burdens for operators, individual income taxpayers, supporting domestic training seminars, which will encourage more domestic tourism, support hotel business improvements, and help mitigate the impact on the aviation industry in Thailand.