Government extends excise tax cut for entertainment venues to boost tourism
The government has decided to extend the current excise tax reduction for entertainment venues, such as pubs, bars, nightclubs, and cocktail lounges, for another year to bolster tourism. This decision was announced by Deputy Finance Minister Paopoom Rojanasakul following a Cabinet meeting held yesterday, December 24. The extension will see the excise tax rate decrease from 10% to 5% of revenue, effective from January 1, 2025, to December 31, 2025.
The main goal of this tax cut is to invigorate the economy and boost tourism, especially as the existing tax reduction measures are set to conclude this year.
The initiative is a part of the government’s broader strategy to stimulate the tourism sector, which includes the Amazing Thailand Grand Tourism Year 2025 campaign. This campaign is designed to distribute income across local communities and increase tourist arrivals in Thailand.
Entertainment and leisure businesses play a significant role in the tourism industry, according to Paopoom.
By reducing taxes, the government aims to stimulate growth within the tourism and service sectors. It is expected that this will also improve cash flow and decrease operational costs for business owners, thereby encouraging tourist spending and generating more income for the country, entrepreneurs, and local communities.
This initiative could also boost employment and have a positive impact on the overall economy.
The tax reduction measures introduced in 2024 have already shown positive results, with more business operators joining the formal tax system, thus expanding the tax base.
Data shows that the number of registered entertainment and leisure businesses paying taxes increased by 1,511, marking a 60.9% rise compared to the period before the measures were put in place. Additionally, there was a 52% increase in the number of operators who could sustain their businesses, reported Bangkok Post.
The Excise Department reported a 31.2% increase in excise tax revenue from entertainment and leisure venues during the same period.
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