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[ 2014-10-16 ]

Tax breaks offer boost to ailing tourism

The government yesterday approved tax breaks on domestic tour packages and hotel accommodation to boost the local tourism industry. 

Under the measure, businesses and private individuals will be eligible for tax deductions on expenses until Dec 31 next year.

The move will cost one billion baht in lost tax revenue, according to government spokesman Yongyuth Maiyalap.

Individuals who buy local package tours or hotel accommodation will be able to list the purchases as deductible expenses against their taxable income for the year. The deductible amount must not exceed 15,000 baht.

This part of the policy is expected to cost 400 million baht.

Businesses, meanwhile, will be able to use the tax breaks to provide residential training programmes for employees. The expenses for such programmes will be tax-free. This will cost the government 600 million baht.

The measures will come into force once they appear in the Royal Gazette. They should generate three billion baht for tourism operators in the country, Mr Yongyuth said.

Source: Bangkok Post