February 4, 2023

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Thailand approves tax breaks to boost public consumption By Reuters

©Reuters. FILE PHOTO: A Thai baht note is seen in this illustrative photo dated June 1, 2017. REUTERS/Thomas White/Illustration

BANGKOK (Reuters) – Thailand’s cabinet on Tuesday approved a tax measure to boost public consumption from January and help the economy recover, a government spokesman said on Tuesday.

The government will give buyers a tax deduction of 40,000 baht (US$1,149.4) on purchases of goods from Jan. 1, deputy government spokeswoman Traisuree Traisoranakul told reporters.

Treasury Secretary Arkhom Termpittayapaisith will hold a briefing on the approved measure later on Tuesday.

The tax break follows previous stimulus measures aimed at supporting Southeast Asia’s second-largest economy, which has lagged behind others in the region in terms of growth, with the important tourism sector only regaining momentum this year.

Economic growth of 1.5% last year was one of the slowest in the region.

The central bank said on Monday that the economy is expected to fully recover in the second half of 2023. It forecasts that the economy will grow by 3.2% this year, 3.7% in 2023 and 3.9% in 2024.