BANGKOK, Oct 9 (TNA) — The government’s newly introduced measure to deduct tax worth up to 30,000 baht for purchases of products and service in the fourth quarter of this year can boost retail but will have limited effects on employment and small and medium enterprises, according Kasikorn Research Center.
The center said that the measure might not convince manufacturers to raise their production. It would help relieve inventories, boost sales and increase liquidity of operators and the most benefit would go to retail, the center said.
The tax reduction measure targeted middle and high-income earners and would stimulate consumption in the fourth quarter of this year. The measure together with more welfare for the poor and restricted arrivals would slow down economic recession in the fourth quarter of 2020, it said.
However, the center said, most beneficiaries would be large operators that were in the taxation system while SMEs might not receive any positive effect, Kasikorn Research said.
When economic stimulus measures end, the degree of consumption would depend on fundamental economic recovery engines including tourism, income from jobs and farmers’ income. Amid the coronavirus pandemic and global economic problems, the Thai economy would be facing challenges, the research center said. (TNA)
