Call for revival of ‘Shop and Payback’ scheme to boost Thai economy
Retailers’ association reckons reinstating the scheme will increase yearend spending and inject up to 100 billion baht into the country in the 4th quarter
Thai retailers are calling on the government to reinstate the “Shop Dee Mee Kuen” (Shop and Payback) scheme to help boost spending at yearend.
The stimulus, which offers tax rebates to buyers of selected products, was implemented to stimulate the economy in the fallout of the Covid-19 pandemic.
A new round of the stimulus, ideally starting now until January next year, could potentially boost domestic spending in the fourth quarter by up to 100 billion baht, Nat Wongpanich, president of the Thai Retailers Association said on Friday.
He said the campaign’s proposed period coincides with the high tourism season and will help create a positive atmosphere for tourists and encourage them to spend more while in Thailand.
The scheme will also complement the government’s economic recovery programme which was launched on Wednesday and will run until January. This scheme aims to reduce business costs and offer products at discounted prices for both large and small retailers.
Nat said that since the Shop and Payback scheme is limited to products under the VAT system, this campaign will also encourage small and medium enterprises (SMEs) and retailers to register under the e-tax system thus boosting the country’s revenue potential.
He proposed that the cap on tax rebate should be raised to 50,000 baht, to attract more affluent shoppers to spend more at local shops.
The scheme, however, does not give discounts on alcohol, tobacco, accommodation and flight tickets.
