The government expects the new tax rebate programme that lets people deduct up to 50,000 baht in personal income tax for goods purchases to help stimulate spending, generating around 70 billion baht in economic circulation.
According to Deputy Finance Minister Julapun Amornvivat, the Finance Ministry plans to propose the "Easy E-Receipt" tax rebate measure to the cabinet next week.
He said the 50,000-baht limit for tax deductions would be divided into two parts, with the first 30,000 baht being used for the purchase of goods, including tourism-related services such as tour packages.
The second 20,000 baht must be used for the purchase of products from community enterprises and Otop (One Tambon One Product) vendors only.
Additionally, goods and services eligible for tax deductions under this measure must be within the value-added tax system and must be issued with an electronic tax invoice.
According to Mr Julapun, the Easy E-Receipt measure is set to begin in mid-January next year and run until the end of February. This is the first time expenses for tour packages can also be used for a tax deduction under the scheme.
While the measure is expected to stimulate spending, the Revenue Department is forecast to forgo around 10 billion baht in tax revenue.
Mr Julapun also noted that the timing of this measure, which covers the New Year and Chinese New Year periods, would make it easier for people to make purchasing decisions and generate additional purchasing power, rather than merely replacing existing demand.
For goods and services that are not eligible under this measure, the conditions remain the same as previously specified. For example, expenses related to the purchase of tobacco, fuel, gas, or the payment of water and electricity bills, internet services and insurance premiums cannot be used for tax deductions under this programme.
In a related development, according to Mr Julapun, by the end of this year and into the first quarter of 2025, the Thai economy will see about 140 billion baht injected into the economic system through three projects. This will enable the Thai economy to grow by about 2.8% in 2024, with growth expected to exceed 3% in 2025.
"The government is trying to stimulate spending and consumption to ensure continuous economic circulation. By the end of this year and into the beginning of next year, up to 140 billion baht will circulate within the economy, which will help stimulate growth," Mr Julapun said.
The 140 billion baht will come from three main projects: a rice subsidy of 1,000 baht per rai, where the government will inject over 30 billion baht to support farmers by the end of this year; the second phase of the 10,000-baht cash handout programme, which will provide 32 billion baht to the elderly; and the Easy E-Receipt spending stimulus programme, with an estimated budget of 70 billion baht.
