The cabinet has approved an extension to the tax reduction measures for pubs, bars, nightclubs and cocktail lounges for another year to support tourism over the coming year.
According to Deputy Finance Minister Paopoom Rojanasakul, the cabinet on Tuesday agreed to reduce the excise tax rate for entertainment venues from 10% to 5% of their revenue for an additional year, starting from Jan 1, 2025 and ending on Dec 31, 2025.
The move aims to stimulate the economy and the tourism industry, as the current tax reduction measures are set to expire at the end of this year.
Aligned with the government's policy to stimulate the tourism sector, including the "Amazing Thailand Grand Tourism Year 2025" campaign, which aims to distribute income to local communities and attract more tourists to Thailand, Mr Paopoom said entertainment and leisure businesses are directly linked to tourism.
The tax reduction measures are intended to stimulate economic growth in the tourism and service sectors.
Additionally, it will enhance liquidity and reduce costs for business operators, thereby encouraging tourist spending and generating more income for the nation, entrepreneurs and local communities. This, in turn, will boost employment and positively impact the overall economy, according to Mr Paopoom.
The tax reduction measures implemented in 2024 have successfully attracted more operators into the formal tax system, broadening the tax base.
The number of registered entertainment and leisure businesses paying taxes increased by 1,511 entities, a rise of 60.9% compared to the period before the measures were introduced.
Additionally, the number of operators capable of sustaining their businesses increased by 52%, while excise tax revenue from entertainment and leisure venues collected by the Excise Department rose by 31.2% over the same period.
