Speaking after the new economic policy committee met for the first time on Wednesday (Oct 15), Finance Minister Ekniti Nitithanprapas said the panel has approved a raft of measures to revitalise the tourism sector, which has contracted by 8% over the past eight months.
The package, to be submitted to the cabinet for approval next week, comprises three key initiatives, reports the Bangkok Post: a B20,000 tax rebate scheme for individuals; a programme to expedite seminar budget spending by government agencies, state enterprises, and local administrative bodies; and a tax deduction scheme for hotel renovations.
Under the tax rebate scheme, individuals will be eligible for deductions on travel expenses - once for trips to major provinces and 1.5 times for travel to secondary provinces. The scheme will run from Oct 29 to Dec 15.
The second measure aims to accelerate the spending of seminar budgets by the public sector without requiring new funds.
Agencies will be required to disburse 60% of the total six-billion-baht budget by the end of January, instead of waiting for the third and fourth quarters, to help drive faster economic expansion.
Mr Ekniti said the ministry will also study a proposal by the Thai Chamber of Commerce to allow companies to deduct travel expenses for employee leisure trips.
The third measure provides double tax deductions for hotel renovations in secondary provinces until March next year.
Eligible expenses include air-conditioning, solar panel, and wastewater treatment systems.
Other proposals under consideration include tax reductions for entertainment venues to encourage operators to register their businesses properly and gain tax benefits.
Mr Ekniti said the meeting also set disbursement targets for the current fiscal year at 75% for investment budgets and 93% for fixed budgets, with these targets to serve as key performance indicators for state agencies.
Unspent funds from the 2025 fiscal year total B300 billion, with only 65% of the investment budget disbursed, he added.
Government spokesman Siripong Angkasakulkiat said the measures are expected to increase economic growth by 0.4% of GDP.
Regarding the co-payment scheme, which opened for merchant registration on Wednesday, Mr Ekniti said it is expected to inject B88bn into the economy, with 900,000 vendors and about 20 million people expected to participate.
The Khon La Khrueng Plus programme offers beneficiaries between B2,000 and B2,400 per person, with daily spending capped at B200 for up to two months.
Addressing tax concerns, Mr Ekniti said data collected under the co-payment programme remains confidential but emphasised that paying income tax is a legal obligation for all earners.
Prime Minister Anutin Charnvirakul said he had instructed the panel to focus on achieving quick wins.