InfoQuest (February 13, 2020) -- The Information Office of Chaeng Watthana Government Complex revealed that relevant financial and fiscal measures have been approved at the cabinet meeting to mitigate the impact on the tourism industry in 2020.
These measures include both financial and tax measures. As to financial measures, the national financial institutions will provide low-interest preferential loans for the tourism and businesses operating in this industry hit by the novel coronavirus to enhance liquidity and transform business premises; extend the repayment period of debts and fees to reduce the burden on operators during the period.
In terms of tax measures, the submission period of the personal income tax returns will be extended by three months to June 2020; support will be provided for domestic training; aviation fuel tax will be lowered from 4.726 Thai baht / liter to 0.20 Thai baht / liter temporarily.
According to Rawan Saengsanit, spokesperson of the Ministry of Finance (MOF) and director of the Fiscal Policy Office (FPO), the cabinet meeting has approved relevant financial and fiscal measures submitted by MOF to reduce the impact on the tourism industry in 2020.
Aimed at mitigating the impact of novel coronavirus and external uncertainties such as international trade conflicts on tourism, these measures consist of the following tax and financial measures:
1.Tax measures
1.1 Extend the tax declaration and tax payment period. Taxpayers who are obligated to pay personal income tax or submit personal income tax returns according to the Income Tax 90 and Income Tax 91 provisions of the Revenue Code of Thailand can complete tax declaration and payment within June 2020 against originally March 2020 in accordance with regulations.
1.2 Support domestic training. During the period from January 1, 2020 to December 31, 2020, fees for training rooms, dormitories, transportation, and others for employee training paid by companies or limited partnerships, and domestic training fees paid to agencies under the Tourism Business and Guide Act can be tax deductible at two times.
1.3 Support the adjustment of hotel businesses. During the period from January 1, 2020 to December 31, 2020, the fees paid by companies or limited partnerships with hotel business in accordance with the Hotel Act to build, rebuild, expand, or repair related assets can be tax deductible at 1.5 times.
1.4 Lower aviation fuel tax for jet aircrafts ( aviation fuel tax for short). Tax rate for fuel for domestic flights will be lowered from 4.726 Thai baht per liter to 0.20 Thai baht per liter till September 30, 2020.
2. Financial measures
The Thai national financial institutions will provide low-interest preferential loans and extend the repayment period of debts and fees for the tourism and businesses operating in this industry hit by the novel coronavirus to enhance liquidity and transform business premises, thereby reducing the burden on operators during the period. The details are as follows:
2.1 Measures to extend the repayment period of debts and fees include
(1) The Government Saving Bank (GSB) will extend the repayment period to twice of the remaining period stipulated in contracts with a maximum of 5 years.
(2) The Small and Medium Enterprise Development Bank of Thailand (SME Bank) will suspend the principal repayment of long-term loans with the remaining amount not more than 5 million Thai baht for 6 months. Participants shall have a good repayment record in less than 6 months from the date of participating in the program, and loans shall not be those that cannot generate income.
(3) The Bank for Agriculture and Agricultural Cooperatives (BAAC) shall allow 12-month deferred repayment at a time with the total times not more than 5, or allow debt restructuring application and extend the repayment period by no more than 20 years.
(4) The Government Housing Bank (GHB) shall lower the loan and installment interest rates to 0.01 percent per year for a period not exceeding 6 months for affected clients, such as tour guides, hotel employees, and small merchants selling goods at tourist attractions.
(5) Thai Credit Guarantee Corporation shall suspend the payment of credit guarantee fees for 12 months for affected travel agencies, restaurants and clients operating in the hotel industry.
2.2 Measures to provide low-interest preferential loan. GSB, SME Bank, and Krung Thai Bank (KTB) will provide a low-interest preferential credit line of 123 billion Thai baht, with an initial annual interest rate of 3 percent.
In 2020 as the novel coronavirus casts a shadow over the world economy, MOF expects these financial and fiscal measures will help spur the tourism industry, enhance liquidity and reduce the burden on operators and individual income taxpayers ; provide support for domestic training and thus promote domestic tourism; provide support for hotel business adjustments to attract more tourists; and ease the impact on the Thai aviation industry.
Source: InfoQuest, by Tanawat Suayaem / Kasamarporn / Rachada, translated by Xinhua Silk Road
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