The cabinet on Tuesday approved another package of measures to boost consumption and support an economy still struggling with the collapse of its vital tourism sector.
The measures include a tax deduction of 30,000 baht for shoppers, an extension of the existing co-payment scheme and a cut in property transfer fees, government spokesman Thanakorn Wangboonkongchana told a news conference after the meeting.
The fourth phase of the popular co-payment scheme in which the government subsidises half of the spending at small stores will likely take place in March and April next year. The current phase ends on Dec 31.
In addition, six New Year "gifts" were approved:
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A new phase of the Shop and Refund programme for total spending of 30,000 baht at VAT-registered stores from Jan 1 to Feb 15 next year. The amount will be tax-deductible.
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One-year exemption of sale licences for liquor, tobacco and playing cards
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A deduction of the jet-fuel excise tax
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A one-year extension of the discounted 0.01% ownership transfer and registration fees for houses priced not more than 3 million baht
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A five-year extension of tax measures and fee cut to support debt restructuring by financial institutions
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Lending interest cuts and refunds at state banks for debtors with good credi
The Energy Ministry will also fix the diesel retail price at no more than 30 baht a litre until at least next March and continues to keep fuel prices at current levels until Jan 4.
Also on Tuesday, the finance minister said he expected the economy to expand 4% next year after only 1% growth predicted for this year, helped by domestic consumption and exports.
Public spending will remain a key driver of growth next year, Arkhom Termpittayapaisith told a news conference. The ministry planned to sell 30 billion baht of government savings bonds in January, he added.