The Finance Ministry is looking into easing the cash out requirements for merchants participating in the digital wallet scheme to enhance accessibility and boost its appeal.
According to Deputy Finance Minister Paopoom Rojanasakul, a stimulus subcommittee is considering this issue before presenting it to the stimulus committee.
The government expects to kick off the third phase of the digital wallet programme, distributing funds to people who register through the state's Tang Rat app starting in the second quarter.
The first two phases covered welfare cardholders, people with disabilities and people age 60 and older.
Merchants who register for the digital wallet programme and wish to convert digital funds into cash must make purchases from the second round onwards.
This means in the first round, when people purchase goods from merchants in an eligible individual's district and those merchants use the digital funds to make additional product purchases, only then can the digital wallet be converted into cash.
However, there are additional conditions that only tax-registered merchants (value-added tax, corporate income tax or personal income tax under Section 40 of the Revenue Code) can cash out, unless the merchant is exempt from tax according to the Revenue Code.
Mr Paopoom said the Fiscal Policy Office's assessment of the first phase of the programme, which provided funds to 14.4 million welfare cardholders and people with disabilities, is that the scheme helped reduce inequality in the country.
The Gini coefficient, which measures income inequality, dropped by 0.01%. Such a reduction typically takes about three years based on historical economic development trends.
He also responded to criticism about the effectiveness of distributing money to reduce inequality, as critics said it is an unsustainable solution.
Mr Paopoom said addressing inequality is not limited to cash distributions to low-income individuals, with other government projects targeting economic development, such as infrastructure investments.
He said the government's goal for the digital wallet programme is a short-term stimulus to build confidence in the economy, benefiting both producers and consumers.
The funds will be distributed across 878 districts nationwide, targeting up to 45 million people, aiming to establish a foundation for both the economy and digital systems, said Mr Paopoom.
The project should create business opportunities and help to lift the economy, he said.
Eligibility for the digital wallet scheme is reserved for Thai nationals aged 16 and older who have taxable income in the 2023 tax year of up to 840,000 baht, with bank account balances of no more than 500,000 baht as of March 31, 2024.
The government set a budget of 450 billion baht for the project, allocated from the fiscal 2024 and 2025 budgets.
