Ministry of Finance Warns on Tax Deduction Misuse Affecting Welfare Card Eligibility

Bangkok: The Ministry of Finance has issued a clarification regarding the risk of losing state welfare card eligibility for children using their parents' names for tax deductions, while also providing an option for appeals.

According to Thai News Agency, Mr. Vinit Visetsuwannapoom, Director of the Fiscal Policy Office and spokesperson for the Ministry of Finance, outlined the criteria for determining eligibility for state welfare benefits. The issue arises when children use their parents' names for personal income tax deductions, potentially disqualifying the parents from the welfare card program. If a child's use of a parent's or spouse's name for deductions indicates a duty of support and meeting the legal income threshold, the system assumes the parents or spouse receive support. However, if the child did not provide such support or the parents were unaware, appeals can be made starting July 17, 2026, for case-by-case consideration.

The Ministry has revised the approval process for current welfare cardholders, shifting from a household financial status assessment to an individual assessment. This change aims to ensure aid reaches those in genuine need while minimizing issues that previously arose from including family members' financial information in the approval process.

The Ministry plans to enhance eligibility checks for welfare card recipients, ensuring taxpayer money effectively supports vulnerable groups. Attention will focus on individuals with securities trading accounts or company directorships, which may indicate economic capabilities beyond low-income criteria.

Mr. Vinit emphasized the importance of distinguishing between genuinely poor individuals and those improperly claiming benefits. The government faces fiscal constraints and must manage its budget prudently. Identifying those truly in need while separating out individuals who "pretend to be poor" requires comprehensive screening and support.

For those losing welfare card eligibility, the Ministry will seek Cabinet approval to extend benefits through the Thai Help Thai Plus project or other measures. The Thai Help Thai Plus initiative, where the government covers 60% of costs and the public 40%, aims to alleviate living expenses and support small businesses and entrepreneurs, boosting the community-level economy.

Additionally, the "Thung Ngern" app's "Nok Krassip" feature offers a simplified accounting system for small retailers, aiding in income and expense tracking and facilitating loan applications. The Ministry assures this data will not lead to additional tax collection.

The Ministry is also exploring the feasibility of a negative income tax system to enhance assistance for low-income earners and establish a sustainable welfare system.