BANGKOK, 7 November 2017 (NNT) – The Cabinet has resolved to stimulate domestic spending during the end-of-year season with a tax incentive campaign, to be effective for 23 days.

Mr Nattaporn Jatusripitak, Advisor to the Prime Minister’s Office Minister, announced the Cabinet’s decision to approve a new tax deduction measure for shoppers, with an aim of boosting the year-end economy. He said, similar to previous years, tax deductions are capped at 15,000 baht per eligible person. Although the measure could cost the government up to 2 billion baht, it is expected to markedly promote spending and consumption.

Under the measure, which will take effect between November 11 and December 3, 2017, any taxpayer purchasing products and services during the 23-day period will be entitled to a tax deduction equaling the paid amount or not exceeding 15,000 baht. To claim deductions, the shopper must be able to present proof of purchases in the form of tax invoices.

To be considered tax deductible, the goods and services must be paid for and used within the country and carry the 7 percent VAT. Products and services ineligible for deductions include alcoholic beverages, tobacco, cars, motorcycles, boats, oil and gas for vehicles, tour and guide services, and travel accommodations.