Government has launched a tax break to encourage spending. To benefit, individuals must spend on eligible goods & services and submit e-receipts, but economists doubt long-term impact.
Government Launches Tax Breaks to Boost Consumer Spending
The government has implemented the “Easy E-Receipt” tax deduction measure from January 1 to February 15 to encourage consumer spending and stimulate the economy. Under the scheme, individuals can receive a tax deduction of up to 50,000 baht from their taxable income if they shop for goods and services from eligible businesses. However, there are some excluded items such as alcoholic drinks, cars, utility bills, and long-term service contracts.
Benefits and Impact of the Tax Incentive
Shoppers can take advantage of the tax incentive for products including books, newspapers, electronic products, and OTOP village-made products. The government expects the initiative to boost spending by about 70 billion baht and increase the gross domestic product by 0.18 percentage point. However, some economists believe it may have only a short-term impact on consumer spending. The tax relief on home ownership has also been extended to support lower income groups.
