Government to extend the “Chim Shop Chai” stimulus program this month
The government is set to roll out a new phase of last year’s successful Chim Shop Chai (Eat Shop Spend) stimulus program to promote domestic spending. The measure is also intended to encourage investment by businesses in an economy hampered by a slowdown in tourist arrivals as a result of the ongoing Wuhan Coronavirus outbreak.
The package, to be implemented sometime this month, has been assigned to the Fiscal Policy Office, the Revenue Department and the Comptroller Department to work out details. Finance Minister Uttama Savanayana says the 12.6 million people, already registered for the program will be eligible to take part.
He says it is yet to be decided whether the program will include the 1000 baht giveaway per person included in the first phase, depending on the economic situation and assessments expected by the end of the month.
In addition to the millions of people already registered, about 170,000 retail shops, malls and department stores have joined, with 28 billion baht already spent via the Electronic Wallet apps.
Thai tourists who travel domestically can have their spending deducted from taxable income. Financial institutions will be urged to provide low-interest loans to tourism operators. Hotels will be allowed to deduct spending on renovation from their taxable income.
Uttama says the most noteworthy stimulus is a tax incentive for companies investing in new machinery.
“They’ll be allowed to deduct up to 2.5 times their investment in new machinery, spent this year, from their taxable revenues.”
The finance minister says he hopes the measure will boost domestic investment by up to 110 billion baht and increase the economic growth rate by 0.25%, with a cost of only 8.6 billion baht in tax revenue.
SOURCE: Thai PBS World
