The Thai government has unveiled two key economic stimulus initiatives for 2025: extending the nightlife tax reduction and introducing a new digital receipt program to enhance consumer spending and tourism.
The Thai Cabinet has endorsed the extension of the reduced excise tax rate for entertainment venues for another year, maintaining it at 5% instead of the standard 10%.
This tax cut will be in effect throughout 2025, from January 1 to December 31, as part of broader measures to invigorate the national economy and tourism sector.
Deputy Finance Minister Phaopoom Rojanasakul stated that this extension supports the government’s tourism promotion strategies, which include the forthcoming “Amazing Thailand Grand Tourism Year 2025” campaign.
This campaign is designed to distribute income to local communities and draw more tourists to Thailand, recognizing the vital role of entertainment venues in the tourism network.
The tax incentive covers a range of nightlife businesses such as nightclubs, discotheques, pubs, bars, and cocktail lounges.
This continuation of the existing tax rate, scheduled to end on December 31, 2024, aims to enhance the tourism and service industries and offer business operators better financial flexibility and lower running costs.
The tax relief measure has already proven effective in 2024, with a notable 60.92% increase in registered entertainment venues, totaling 1,511 new establishments.
There has been a 52.06% improvement in business operational capability, and despite the tax cut, the Excise Department has observed a 31.24% rise in tax revenue from these establishments.
This tax cut is part of a wider governmental effort to boost employment, increase tourism expenditure, and support economic expansion through the nightlife and entertainment sectors.
Easy E-Receipt 2.0
In a related development, the Cabinet has green-lighted a New Year’s economic stimulus package proposed by the Ministry of Finance, introducing the “Easy E-Receipt 2.0” program.
This initiative offers taxpayers deductions of up to 50,000 baht for qualified purchases made from January 15 to February 28, 2025.
Program Structure: The deductible amount of 50,000 baht is split into:
– 30,000 baht for general goods and services, including expenses related to tourism such as tour packages, hotel stays, and car rentals.
– 20,000 baht for purchases specifically from community enterprises, SMEs, and OTOP shops participating in the electronic tax system.
Eligibility Requirements: To qualify, purchases must be made from VAT-registered vendors that issue electronic tax invoices via the e-Tax Invoice & e-Receipt system.
Excluded Items:
– Alcoholic beverages (spirits, beer, and wine)
– Tobacco products
– Vehicles (cars, motorcycles, and boats)
– Vehicle fuels and gases
– Utility bills (water, electricity, phone, and internet services)
Insurance premiums and long-term service contracts that begin before January 1, 2025, or end after February 15, 2025
The Ministry of Finance estimates that this initiative will circulate approximately 70 billion baht in the economy and reduce tax revenue by about 10 billion baht while increasing business participation in the tax system by around 20% year over year.
Further specifics about the program’s rules, procedures, and conditions will be provided by the Revenue Department’s Director-General.
