THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


VAT refund up to B20k for Chinese New Year

VAT refund up to B20k for Chinese New Year

BANGKOK: The Finance Ministry plans to offer a value-added tax (VAT) refund to shoppers who spend up to B20,000 from Feb 1-15 next year in a bid to boost domestic spending amid murky economic prospects.

tourismeconomicsChinese
By Bangkok Post

Saturday 1 December 2018, 11:10AM


The shopping tax break is scheduled to coincide with Chinese New Year in 2019. Photo: Bangkok Post

The shopping tax break is scheduled to coincide with Chinese New Year in 2019. Photo: Bangkok Post

With a B20,000 maximum and a 5% VAT refund, shoppers will be eligible for B1,000 back, said Finance Minister Apisak Tantivorawong.

Only spending on debit cards with savings accounts linked to PromptPay will qualify for the VAT refund.

The shopping tax break is expected to cost the government B6-7 billion in forgone revenue, Mr Apisak said.

The VAT refund period coincides with Chinese New Year, which falls on Feb 5, 2019.

Thailand has a 7% VAT on domestic purchases of goods and services.

The Finance Ministry’s latest tax break idea comes amid criticism that the government's recent B86.9bn splurge on low-income earners, the elderly and retirees represents pork-barrel policymaking as next year’s general election approaches.

Critics have said the cash handout packages will give the pro-government camp an advantage over other political parties in the general election.

Mr Apisak said he hopes the VAT refund scheme prompts a spending spree and helps maintain the country’s economic growth at 4% or above next year.

In the event that the economy expands by less than 4%, an enormous effort would be required to raise the figure to 4%, he said.

Refund claimants are required to spend at shops that have electronic data capture connected to point-of-sale terminals to enable their spending information to be directed to the Revenue Department.

The VAT will be refunded through PromptPay, the government's online money transfer system, by March 15.

Financial institutions have requested a fee waiver to add debit features to ATM cards to facilitate the measure, Mr Apisak said.

Unlike the imminent tax break for purchases of tyres, books (both hard copies and e-books) and One Tambon One Product (Otop) items, purchases of all goods and services with VAT obligations can be claimed under the new scheme, which all consumers can enjoy.

Mr Apisak insisted that the new tax incentive is not a means for the government to seek voter support, but rather is part of a series of measures the Finance Ministry has considered for a while.

Pinsai Suraswadi, Director of Tax Policy and Planning at the Revenue Department, said the limited shopping tax break, expected from Dec 15, 2018 to Jan 15, 2019, will cost the government B1.6bn in revenue.

The estimated figure is below the B2bn in income tax claims by 1.4 million taxpayers under the shopping tax break in 2017, as the impending tax incentive, which lets individual taxpayers deduct up to B15,000 in taxable income, is limited to purchases of tyres, books and Otop products.

Taxpayers can deduct their taxable income either this year or next.

 

Read original story here.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

Have a news tip-off? Click here

 

Phuket community
MP Sira warns Governor of Amlo complaint over Phuket condo project

Reading again the word 'fairness' make me puke. That is a word used here for arranging matte...(Read More)


MP Sira warns Governor of Amlo complaint over Phuket condo project

Seems like he has been cut out of the project and is abusing his position over sour grapes. Nothing ...(Read More)


After death threats, Bangkok MP fires up legal action over Phuket condo project

One wonders why a Bangkok MP is sticking his nose into Phuket issues. He clearly didn't get his...(Read More)


After death threats, Bangkok MP fires up legal action over Phuket condo project

Dear K. Cheewapap, Why are you allowing hundreds of rai in the Sirinart Nat'l Forest Reserve al...(Read More)


Three underpasses to close for electrical works

So, no reason given as to why the "metres[sic]" were not installed before the tunnels were...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

The comparison to Bradman itself is baloney. They never had batting helmets in the old days, bats we...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

The Captain of the Australian Team IS supposed to be perfect, in regards to not intentionally cheati...(Read More)


Smith's Ashes run-spree sparks Bradman comparisons

It wasn't a mistake by Smith. It was intentional cheating that he as Captain of the Australian t...(Read More)


Three underpasses to close for electrical works

Why not make this during night time ?...(Read More)


Expat forum on TM30 yields little impact

The Thai ability to ignore reality can be staggering. Most wrong-doers have Thai ID cards, and those...(Read More)