BANGKOK, 16 October 2014: The Thai Cabinet has approved, Tuesday, a tax rebate on travel expenses, that citizens can gain when filing their annual tax declarations.
Government spokesman, Yongyuth Maiyalap, said domestic tourism is expected to boom after the government approved a tourism tax rebate that will allow the people to deduct tourism expenses from their tax declaration.
Under the scheme, businesses and private individuals will be eligible for tax deductions on expenses until 31 December next year.
He said individuals who buy local package tours, or hotel accommodation, will be able to list the purchases as deductible expenses against their taxable income for the year. The deductible amount is set at no more than THB15,000.
This part of the policy is expected to cost the government THB400 million, he said.
Companies will also be able to use the tax rebate for residential training programmes for employees.
The expenses for such programmes will be tax-free and will cost the government THB600 million.
However, the government hopes the tax breaks could also generate THB3 billion for the tourism industry and indirectly raise tax in other areas of spending.
The measures will come into force once it is published in the Royal Gazette.
According to the recent Bangkok University Research Centre’s Bangkok Poll, 66 economics from 29 organisations were split on the merits of offering tax rebates to expand domestic tourism.
Those who agreed with the proposal reasoned that it would promote tourism, and encourage people to tour in the country, instead of travelling overseas.
However those who disagreed said it would not help to promote domestic tourism, but benefit only high income earners, certain business groups, and would not benefit low income earners.
The opponents added that tourism is robust and does not need more support. The budget should go to other areas where low-income groups needed assistance. Holidays were well down the priority list.