Tax incentive to boost yearend shopping likely
THE Ministry of Finance has prepared a New Year present for all Thais which will also help spur consumption within the country and expects to submit its proposal to the Cabinet within one to two weeks, Thai News Agency said today.
Under this proposal the ‘shop to help the country’ campaign introduced last December could be reintroduced but the period would be longer than the last seven days of the year.
Under the tax move to boost yearend shopping last December, a person whose personal-income-tax rate was 20 per cent was entitled to a saving of 3,000 baht if he or she spent 15,000 baht during the promotional period, while a person who paid 10 per cent in personal income tax received 1,500 baht reduction in tax, according to The Nation.
At present, the tax rates are 0 per cent for yearly earnings of 150,000 baht or less, and up to 35 per cent for yearly earnings of more than 4 million baht.
To qualify for the tax reduction, all transactions had to be verified by a full value-added-tax invoice. That meant the measure was not applicable to providers of services or products that did not pay VAT. In addition, alcohol, beer, wine, tobacco, cars, motorcycles, fuel, boats and gas use for automobiles were exempt as they were not subject to VAT.
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Top: Shopping malls such as MBK should benefit from the special tax break for shopper if it is reintroduced at the end of this year. Photo: Transformer18 (CC-BY-2.0)
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