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The Thai Cabinet has approved a set of tax measures to promote tourism in secondary cities during the low season.
The initiative, effective from May 1 to November 30, 2024, aims to stimulate domestic travel and support related businesses such as restaurants, transport services, and homestays, which have been impacted by the COVID-19 pandemic and the slowdown in the Chinese economy.
Deputy Government Spokesperson, Radklao Inthawong Suwankiri, the Deputy Government Spokesperson announced that the measures include tax incentives for both businesses and individuals.
For companies, they can deduct double the actual expenses for training and seminars held for employees in secondary cities. These expenses must be documented through the e-Tax invoice and e-Receipt system. If the events are held in major cities with travel extending to multiple provinces or secondary cities, the deductible amount is 1.5 times the actual expenses.
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The Ministry of Finance anticipates a revenue loss of 1.2 billion baht due to these incentives.
For Individual, they can deduct travel expenses, including tour services and accommodation, from their taxes up to a maximum of 15,000 baht. These expenses must also be documented through the e-Tax invoice and e-Receipt system.
The government expects a revenue loss of 581 million baht due to these measures.
Prime Minister Srettha Thavisin emphasized the importance of inter-agency cooperation to push and implement these policies effectively.
Despite the projected tax revenue loss, the government expects these measures to indirectly boost overall economic activity and generate income through increased tourism.
He also urged government coalition MPs to coordinate with relevant agencies to support tourism promotion in their areas. (TNA)