BANGKOK (Reuters) – Thailand’s cabinet on Tuesday approved a tax measure to help boost public consumption starting in January to support the economy as it recovers, a government spokesperson said on Tuesday.
The government will offer a tax deduction of 40,000 baht ($1,149.4) for shoppers on goods purchases from Jan. 1, deputy government spokeswoman Traisuree Traisoranakul told reporters.
Finance Minister Arkhom Termpittayapaisith will hold a briefing on the approved measure later on Tuesday.
The tax break follows earlier stimulus measures aimed at supporting Southeast Asia’s second-largest economy whose growth has lagged behind others in the region, with the crucial tourism sector only starting to rebound this year.
Last year’s economic growth of 1.5% was among the slowest in the region.
The central bank said on Monday the economy was expected to fully recover in the second half of 2023. It has forecast the economy will expand 3.2% this year, 3.7% in 2023 and 3.9% in 2024.
(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Kanupriya Kapoor)
