The cabinet on Tuesday (Nov 7) approved the Finance Ministry’s shopping tax break for about three weeks between Nov 11-Dec 3 as an economic stimulus measure, according to Nathaporn Jatusripitak, an adviser at the Prime Minister’s Office.
Under this measure, an individual income taxpayer can deduct the value of domestic purchases of goods and services from personal income tax. The goods and services bought must be for use in the country only.
However, the tax deduction will be capped at 15,000 baht.
Mr Nathaporn said relevant agencies were working out the details of the scheme. However, the scheme will generally be the same as the one implemented last year.
Under the 2016 shopping stimulus scheme, the goods and services purchased under this measure will not include liquor, beer, wine, tobacco, automobiles, motorcycles, boats, fuel and gas for vehicles and related services.
In order to get a tax deduction, the taxpayers are required to submit receipts and tax invoices.
Mr Nathaporn said the government is expected to lose 2,000 million baht in tax revenue, but it is hoped the measure will help spur the economy.
The cabinet also approved a budget of 4,715.19 million baht for the rehabilitation of three groups of farmers and people affected by floods and 4,703.78 million baht for spending in emergencies.
The first group including those affected by storms Talas and Sonca between July 5 – Sept 15, 2017. Each of the 1.7 million households affected by the storm will get 3,000 baht, or 5,363.74 million baht in total. Moreover, 233.51 million baht will be set aside to help members of cooperatives. A total of 622 cooperatives will extend the debt repayment periods for their members and the government will compensate them with an interest of 3% per year.
In the second group are people affected by storm Doksuri between Aug 16-31 oct, 2017. Each of the 250,000 households affected by the storm will get 3,000 baht, about 750 million baht in total.
In the third group are farmers in 13 low-lying areas who had to adjust their rice farming system. They will be provided with rice seeds for 1.5 million rai of farmland.