Dining tax break for Songkran gets nod

Songkran revellers exchange water shots on Silom Road last year. (Bangkok Post file photo)

Individual taxpayers who dine at restaurants that issue tax invoices during the Songkran festival from April 9 to April 17 can claim an income tax deduction of up to 15,000 baht.

The tax incentive was approved by the cabinet on Tuesday. It is aimed at spurring domestic spending and encouraging people to spend during the long public holiday in Thailand, rather than travelling abroad.

The cabinet also resolved to extend for another year the 15,000-baht tax deduction allowed for individuals staying at hotels and spending on travel, also to boost domestic tourism. It is retrospective from Jan 1 to Dec 31 this year. Companies can also deduct the equivalent of twice the actual cost of holding meetings and workshops in Thailand.

Finance Minister Apisak Tantivorawong said the renewed tax incentives, especially the dining tax break on April 9-17, would help promote family activities during the Thai New Year holiday season. It would generate income for local restaurants and bring more of them into the taxation system.

The scheme would have a small effect on some state revenues, but would boost revenues from collection of other types of taxes.

Tourism and Sports Minister Kobkarn Wattanavrangkul said the tax deductions were expected to increase the number of tourists during Songkran by around 2.5 million, or 20% - about 2.1 million of them Thai - and generate about 15 billion baht in tourism revenue.

The government late last year approved a special tax break allowing individuals to deduct up to 15,000 baht on purchases with receipts made during the New year festive season, also to spur holiday spending. Taxpayers capitalising on the break benefitted by a total of 4 billion baht in deductions.

The government said it helped stimulate domestic consumption, with the Revenue Department receiving more in value-added tax (VAT) revenue.

The Revenue Department also sought to boost consumption last year with a 15,000-baht travel tax break. The scheme has also been extended for another year.