BANGKOK: -- The Revenue Department has accepted the tourism sector’s proposed tourism tax rebates to boost domestic tourism.
However it slashed the proposed 20,000 baht tax rebates proposed by the Tourism Council of Thailand to 15,000 baht for individual, but increase the tax rebate for corporation by twofold of actual expenditures.
Revenue Department director-general Prasong Poonthanet said the short-term measure to boost domestic tourism proposed by the Tourism Council of Thailand will be forwarded to the new cabinet and the National Council for Peace and Order for approval.
Under the revised tax rebates to boost domestic tourism, he said the proposed tax rebates of 20,000 baht from the individual’s annual personal income tax payment will be slashed to 15,000 baht.
However tax rebates for corporation which hold seminars and meetings in tourist spots, he said they could use hotel bills to deduct their corporate tax by twofold of their actual spending.
He said this short-term measure will result in the department to collect two billion baht less in its annual tax collection.
Earlier the Tourism Council of Thailand proposed the military junta the 20,000 baht tourism tax rebates to promote domestic tourism.
Under such measure, local tourists are allowed to use receipts from their tourism expenditures such as hotel accommodations and tourism service in the country to claim tax rebates at their annual personal income tax payment.
This was said to stimulate local tourism and curb people from touring abroad.
However a survey by Bangkok Poll revealed that such measure will not boost tourism but to benefit high income earners and certain businesses, while the low-income earners get nothing from the measure.