Bangkok: The Economic Cabinet has approved a nationwide tourism stimulus package, offering a 20,000 baht tax deduction, in a bid to revitalize Thailand’s economy. The initiative aims to boost GDP by 0.4 percent by providing different tax deduction rates for travel to major and secondary cities.
According to Thai News Agency, Deputy Prime Minister and Finance Minister Ekniti Nitithanpraphas announced that the Economic Cabinet meeting, chaired by Prime Minister and Interior Minister Anutin Charnvirakul, addressed the decline in domestic tourism by 8% over the past eight months. To counter this trend, the Ministry of Finance proposed a comprehensive tourism package. The approved measures include tax incentives, with a maximum deduction of 20,000 baht per person, valid from October 29 to December 15, 2025. Travel to major cities will qualify for a standard deduction, while travel to secondary cities will benefit from a 1.5x deduction.
The Cabinet also introduced a project to accelerate seminars and conferences organized by government bodies, state enterprises, and local administrative organizations, utilizing a 6 billion baht budget. The funds are to be disbursed by January 2026 to stimulate economic activity. Additionally, the Chamber of Commerce president suggested allowing corporate entities to deduct expenses for domestic employee travel from their taxes. The Ministry of Finance will conduct a feasibility study on this proposal.
Further measures include support for hotel and accommodation improvements, permitting double deductions for related expenses, particularly in secondary cities. Eligible costs include installing air conditioners, solar cells, and wastewater treatment systems, with spending allowed until March 2026.
The Cabinet has also approved a reduction in the entertainment venue tax from 10% to 5%, facilitating the entry of operators into the legal framework. The government aims to expedite the disbursement of the 2026 budget, which exceeds 3.78 trillion baht. With a surplus from the previous year, the government targets 93% budget disbursement and 75% investment, setting these as KPIs for department heads. These economic measures are expected to contribute to a 0.4% growth in the economy, exclusive of forthcoming loan measures.