The Thai Cabinet on Tuesday approved another stimulus package to boost the kingdom’s economy in 2023 as tourism is expected to continue to recover.
The scheme known as “Shop Dee Mee Kuen” will allow consumers spending on products and services in Thailand to be eligible for tax deduction up to THB 40,000 per person.
The Ministry of Finance estimated that the scheme, which will run from 1 Jan – 15 Feb 2023, will generate more than THB 56,000 million of cash flow in the country, while the Revenue Department would lose THB 8,200 million of tax collection. The scheme is expected to drive Thai gross domestic product in 2023 by 0.1-0.2%.
Products and services that were excluded from the scheme are liquor, tobacco, vehicle, boat, hotel reservation, travelling guide fees, utility fee, insurance etc.
As the Thai economy started to recover from the pandemic, tourism is one of the key drivers that are widely expected to boost economic growth. The Tourism Authority of Thailand anticipated 20 million tourist arrivals next year, up from the 10 million target in 2022 that has already exceeded in early December.
