The cabinet on Tuesday resolved to double the tax break for domestic tourists to 30,000 baht in total for their travel spending this year.
The government has already allowed a tax reduction of 15,000 baht from taxable incomes for domestic tourists throughout this year. The latest privilege doubled the tax break to 30,000 baht.
Nathaporn Jatusripitak, adviser to the commerce minister, said the tax measure was aimed at boosting tourism at the end of this year and applied to spending on tour services and accommodations for domestic trips from Dec 1-31.
The tax reduction was available for actual spending up to 15,000 baht per person, he said.
The measure would cost government 150 million baht in lost revenue but should stimulate local spending and the economy, Mr Nathaporn said.
The cabinet on Tuesday did not consider a tax incentive to promote shopping, Mr Nathaporn said.
Last week, the cabinet approved 10-billion-baht cash handouts of 1,500 or 3,000 baht each to low-income earners as a New Year gift. The handouts were offered to people earning less than 100,000 baht a year.