Thailand mulls to cut tax on luxury goods

BANGKOK, September 24 (TNA) - The Thai Ministry of Finance will ask the Cabinet to cut tax on luxury goods late next month, aimed to boost people's spending in the upcoming high season. Permanent Secretary for Finance Areepong Bhoocha-oom told reporters on Tuesday that Prime Minister Yingluck Shinawatra has ordered his ministry to work out measures to boost tourism under the “Shopping Paradise” initiative. Areepong acknowledged that the measures include the tax cut on luxury products from 30 per cent to 5 per cent to encourage international visitors’ spending in the country during their New Year celebrations. Areepong admitted that the planned tax reduction is to undergo consideration on its impacts, especially on garments and cosmetics, but pointing out that incomes from domestic tourism could help support the recovery of the national economy. According to the senior official, the prime minister has also ordered his ministry to promote border trade and investment by increasing the ceiling amount of cross-border cash meant for trade and investment, as the value of border trade has grown by 20 per cent annually, after the Bank of Thailand (BOT) has increased the currencies for exchange for 30-40 companies, which should increase border trade. Meanwhile, the Ministry of Finance asked the Cabinet, at its weekly meeting, to disburse an overdue budget of about 40 billion baht to be bonuses of government officials, which have been delayed since 2011 and 2012, aimed to also boost the purchasing power of government officials late this year. (TNA)