Measures to pump in B192bn
Cash flow of 192 billion baht is anticipated to circulate in the economy as a result of the three measures aimed at stimulating consumer purchasing power, says the Finance Ministry.
The circulation will contribute 0.54% of growth to Thailand's GDP, according to a statement by the Fiscal Policy Office (FPO).
The three stimulus measures are the Return on Good Shopping scheme, the co-pay scheme and an additional living allowance for state welfare cardholders.
The Return on Good Shopping scheme is designed to stimulate domestic consumption by supporting businesses registered in the tax system and people who are liable for personal income tax payment, said the FPO.
The scheme also aims to promote local products, a foundation of community economies, said the FPO.
The government last week approved a proposal to offer taxpayers income tax deductions of up to 30,000 baht for purchasing products and services with a 7% value-added tax, except for alcoholic beverages, tobacco products, government lotteries, fuel, accommodation services and air tickets.
The scheme has been met with criticism.
Sansiri president Srettha Thavisin said the shopping stimulus with tax incentives is not the right solution for the economy as many people do not have money to buy more products for tax rebates, therefore the benefit will only go to high-income earners.
Kasikorn Research Center also suggested most beneficiaries will be large corporations registered in the tax system, with most small and medium-sized enterprises expecting to receive little direct benefit.
For the co-payment scheme that grants a maximum 3,000 baht per person to 10 million consumers over three months, with the government subsidising half the price of products, small-scale vendors and individual hawker stalls will be supported, said the FPO.
Some 226,161 stores were registered in the co-payment scheme as of Oct 10.