The tax break on year-end shopping is set to go before the cabinet today, but there are two options for implementation -- running for one month with immediate effect or two weeks but coming into effect later, says an informed source at the Finance Ministry.
Mr Apisak supports the VAT proposal.
The imminent tax incentive is similar to last year's version, when each individual taxpayer was allowed to deduct up to 15,000 baht from the value of goods and services purchased from taxable income, the source said.
The Finance Ministry has not reached a conclusion on the implementation date, the source said, adding that a longer implementation period is expected to lead to a higher tax deduction and less government revenue.
The proposal for this year came after Prime Minister Prayut Chan-o-cha ordered the ministry yesterday to prepare tax breaks for year-end shopping to stimulate consumption.
A year-end tax incentive has been implemented for two straight years. Last year a similar incentive was offered during Dec 14-31, while the scheme in 2015 lasted only seven days.
The past two years, only purchases from retailers and distributors registered under the value-added tax system were eligible for the tax deduction. The offer was not valid for purchases of liquor, beer, wine, tobacco, vehicles, motorcycles, ships or fuel for vehicles and ships.
Finance Minister Apisak Tantivorawong said he is uncertain whether the tax break on shopping will seek the cabinet's approval on Nov 7.
The tax incentive is considered to be worthwhile because some middle-class Thais shop when they travel abroad, while others buy goods online that are VAT-exempt, he said.
In related news, Mr Apisak forecast the Thai economy to expand by 4% in the third quarter and by more than 4% for October to December, raising full-year growth to 3.8-3.9%.
He said he agreed with the Tourism Authority of Thailand's proposal to let tourists claim a VAT refund at point of sale, but the Revenue Department and Customs Department are both concerned whether the VAT-free products would be taken outside the country. They worry that tourists will benefit from the exemption by selling the products to locals.
Nattakit Tangpoonsinthana, executive vice-president for marketing at Central Pattana Plc, the operator of Central malls, said the company would like to see the shopping tax break in place by the end of November or early December.
