Several eateries and stores have put up signs, saying that they do not accept payment via the Government’s 50:50 co-payment stimulus scheme because they are afraid that revenue officials may demand back taxes.

Rangsiphan Poonphan, a shopkeeper at a market behind the Finance Ministry, told Thai PBS that she is worried that she may have to pay more tax, after she learned that several stores had started refusing payments under the co-payment program, although she admitted that the scheme has boosted her sales.

Some stores in the Pracha Chuen and Phahonyothin areas claimed that the taxmen had demanded back taxes from them, amounting to tens of thousands baht.

The Fiscal Policy Office has insisted, however, that the co-payment scheme is not linked with the database of the Revenue Department and paying back taxes should not pose a problem.

According to the office, small entrepreneurs who have joined the program can submit their tax return forms as an individual tax payer.

Businesses with annual earnings in excess of 1.8 million baht will be required to register for value-added tax (VAT). Failing to do so means they may face a fine of 2,000 baht and pay at 1.5 times the amount assessed.

More than 1.3 million stores and vendors have joined the 4th phase of the co-payment scheme.