The government gave THB 15,000 tax break on domestic purchases from Dec 14 – Dec 31st. The tax break does not quality for alcoholic beverages, cigarettes, hotel accommodation, boat, motorcycle, car, fuel.
Government has taken the measure to increase the spending thereby promoting tourism. Earlier, the government also cut half the visa fee for tourists to Thailand.
Thailand’s economy has gone down by (approximately) 2% this year therefore the government is trying desperately to improve.
Earlier, the government also approved THB 15,000 tax breaks on hotel accommodations to encourage domestic tourism.
According to Bangkok Post, the Tourism and Sports Minister Kobkarn Wattanavrangkul said that gift purchases during the festive season accounts for 25 – 30% of the spending and giving tax breaks could increase spending.
The government expects people to spend more than 20 billion baht due to the tax break benefits.