Economy

Government to extend the “Chim Shop Chai” stimulus program this month

Published

1 year ago

Sunday, February 2, 2020

Jack Burton

PHOTO: The Thai government has announced a fourth phase of its Chim Shop Chai stimulus program - The Bangkok Post

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

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Jack Burton

Jack Burton is an American writer, broadcaster, linguist and journalist who has lived in Asia since 1987. A native of the state of Georgia, he attended the The University of Georgia's Henry Grady School of Journalism, which hands out journalism's prestigious Peabody Awards. His works have appeared in The China Post, The South China Morning Post, The International Herald Tribune and many magazines throughout Asia and the world. He is fluent in Mandarin and has appeared on television and radio for decades in Taiwan, Mainland China, Hong Kong and Macau.