Thai cabinet approves tax measures to boost economy

In order to boost Thailand’s economy, the country’s weekly cabinet meeting on Tuesday approved a number of tax measures which have taken effect from Jan. 1 of this year. The tax measures that range from the property sector, tourism sector, small- and medium-sized (SMEs) industry to household will supposedly result in the government’s loss of tax revenues of 10 billion baht (29 million U.S. dollars) per year. These tax measures are:

1. Individuals or a group of individuals without fixed income will be taxed 5,000 baht (147 U.S. dollars per annum, for the income higher than one million baht (29,411 U.S. dollars). Earlier, they were subjected to 300 baht tax (8.8 U.S. dollars), for a minimum income of 60,000 baht (1,764 U.S. dollars).
2. Those who buy houses this year are eligible to deduct a taxable income with 300,000 baht (8,823 U.S. dollars) of principle and 100,000 baht (2,941 U.S. dollars) of interest.
3. Tax privileges to venture capital funds which invest in SMEs enterprises would also be extended for another three years to 2011.The privileges were expired at the end of 2008.
4. Tax privileges on restructuring of debts incurred from mergers and acquisitions will be extended by another year.
5. Companies which are hosting seminars at domestic tourist destinations can deduct its corporate taxable income twice the value of the expenses.
6. Households will be waived from water and electricity charges, if their water and electricity consumption does not exceed 60 units and 90 units per month, respectively.
7. The government will also intervene prices of five main agricultural products including rice, tapioca, rubber, corn and palm.

Apart from this, the cabinet has also decided to waive visa fee for all foreign tourists over the next three months, lowering a landing and parking fee for aircraft at major domestic airports, and reducing an entrance fee at all national parks for two years.