Tourism/low season promotion

Chatrudee Theparat

The cabinet endorsed the launch of tax measures to boost tourism in second-tier tourism provinces during low season.

The measures will cover to companies and individual travellers. For corporate tax, it can deduct expenses for 2 times for seminar. For tax payer, they can deduct up to 15,000 baht for guide tour and hotel fees.

Prime Minister Srettha Thavisin said the cabinet approved tax measures to promote domestic tourism, especially in the second-tier tourism provinces.

“It is expected that the implementation of the tax measures will cause the state to lose 1.5 billion baht. However, the measure is projected to stimulate spending in the tourism areas which can generate more income in the cities than the government’s revenue loss.”

He said the government plans to stimulate tourism in an effort to boost the economy to meet the goal by this year. The recent meeting among the economic team on June 3, 2024 agreed to implement various measures.

In supporting tourism in second-tier tourism provinces, the government will support related agencies to organize various festivals in secondary cities, especially during the low season.

“I told ministers that If they have good proposals in their provinces, please coordinate with the Tourism and Sports Ministry to help in order to implement the activities,” Mr Srettha said.

Deputy finance minister Paopoom Rojanasakul said that the cabinet approved two tax measures to stimulate revenue earning from tourism in the second-tier tourism provinces during low season.

Deputy finance minister Paopoom Rojanasakul

The first is a tax measure to stimulate domestic tourism. Companies can deduct two times of expenses for corporate tax. The expenses include room fees, logistic cost or other related expenses in the training programne or seminars held for employees in the second-tier tourism provinces. Also, it includes service fees for tour operators for such training or seminars.

Companies is eligible a deduction for 1.5 times of expenses for the seminars in main tourism provinces.

The second is the tax measures to stimulate tourism in secondary cities for individuals. They are eligible to deduct 15,000 baht for hotel accommodation and Thai homestay for traveling in second-tier tourism provinces.

The measures takes effect between May 1 and 30 November.

“Both measures must have a full tax invoice according to Section 86/4 of the Revenue Code in electronic form. The system of electronic tax invoices and electronic receipts ( e-Tax Invoice & e-Receipt).”

Mr Paopoom said that the government is preparing to introduce additional tourism measures, which will be proposed to the cabinet over next two weeks.