An amendment bill which would entitle taxpayers to a larger tax deduction if they have two or more children from this year as part of incentives to boost the country's population has been passed in its first reading in the National Legislative Assembly (NLA).
The bill, which amends the Revenue Code, was proposed by the cabinet at the NLA meeting yesterday.
Speaking before the lawmakers, Deputy Finance Minister Wisudhi Srisuphan said the bill would help encourage parents to have more than one child, which would create a bigger workforce in the future.
Based on the amendment, either parent can claim a tax deduction of 30,000 baht per child starting from the second child. At present, a tax deduction of 15,000 baht per child is offered to either parent for all the children they have.
The new rate will be in place for those with taxable income starting this year. However, taxpayers are not due to file their income tax return forms until early next year.
Most lawmakers supported the bill, which they said would encourage people to have more children amid the country's ageing society.
Some NLA members, however, argued that a tax deduction of 30,000 baht per child may not be enough to spur a population increase. They said the amount should be raised along with other incentive measures.
Some insisted the number of children may not be as important as their quality of life, adding the country's education system must be improved to make sure they become "quality adults".
Responding to requests to boost the tax deduction amount, Mr Wisudhi noted that it was also important to take into account the sustainability of the country's finances and the need to maintain fiscal discipline.
The assembly subsequently set up a 15-member committee to vet the bill in seven days.
