BANGKOK, 8 April 2016: The Thai Cabinet tax deduction scheme will help to boost tourism revenue during Songkran and the remainder of the year, according to a Kasikorn Research Centre report.
The Cabinet, late last month, approved tax rebates that kicked off in time for the Songkran Festival travel peak, 9 to 17 April. It should spur travel spending as travellers will gain valuable ax rebates when they file their annual tax returns.
Travellers can deduct up to THB15,000 for the fiscal year 2016, ending 31 December, based on official invoices for travel related services and another THB15,000 for hotels services.
Combined the maximum tax deduction will be THB30,000 per person for the entire year.
The centre estimates that the tax deduction will help encourage additional spending of THB2,600 million and this in turn will result in a total gross revenue earned during Songkran of THB36,100 million.
The figure could have been higher if the tax rebate had been announced earlier. Most travellers had already booked and paid for their Songkran trips before the tax rebate measures took effect.
Of that total revenue, THB24,100 million will be tourism related and THB12,000 million will be in the restaurant or food and beverage categories.
The centre advised restaurant operators to use the tax rebate scheme to promote and attract more customers.
Kasikorn Research Centre is a subsidiary company of Kasikorn Bank, which conducts tourism and business research mainly on Thailand’s economy including tourism with reliable recommendations and indicators on business prospects.