Thais beat tax with travel

BANGKOK Thailand’s Department of Tourism encourages Thais to travel in the country to take advantage of a tax rebate that will end 31 December this year.
The department’s acting general director, Wannasiri Morakul, said Thai travellers can gain a THB15,000 rebate during the two remaining months of the year on their travel expenses.
The department comes under the supervision of the Ministry of Tourism and Sports.
“The policy will allow the people to deduct tourism expenses from their annual tax declaration and this will boost domestic tourism.”
inside no 1Under the scheme, businesses and private individuals will be eligible for tax deductions on travel expenses, supported by invoices, until 31 December.
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 rebate cannot exceed THB15,000.
Tourism Council of Thailand has called on the government to extend the rebate policy and increase deductible tourism expenses from a ceiling of THB15,000 to THB50,000.
The government has not responded and it will largely depend on the country’s success attracting international tourists. If international arrivals exceed the year’s target, and there is evidence that foreign travellers are also visiting secondary destinations, it might be argued that encouraging domestic tourism, that comes with a low daily spend, should not be a priority for tax relief.
Domestic tourism has helped to compensate for losses suffered in the international market in the past, but the boom in travel from China and other Asian markets, this year, has once more placed international tourism at the top of the marketing priority list. However, Tourism Authority of Thailand says the priority remans to increase domestic travel spend next year from the current THB4,200 per day, per head, to THB4,330.
TAT projects domestic tourism could reach 148 million trips and generate THB800,000 million in 2015, an ambitious target that will require strong promotions.
Domestic trips could reach 150.8 million in 2016 (+4%) and generate THB807,000 million (+8.%) in revenue. The percentage growth is based on the 2015 target.

sourced:ttrweekly.com