11 July 2024

Cash subsidies given last year by the government, under various populist policies to increase the purchasing power of consumers and to boost the economy recovering from COVID-19, are exempt from personal income tax, according to a cabinet decision yesterday (Tuesday).

Special allowances provided to medical personnel and other officials involved in the monitoring, investigation and control of COVID-19, treatment of COVID-19 patients, vaccination and providing medical advice to control the spread of the virus are also exempt, said Deputy Government Spokesperson Traisuree Traisoranakul.

Subsidies which are exempt include:

  • Expenses for food, drinks, products or services paid for electronically under Phases 4 and 5 of the 50:50 co-payment scheme.
  • Expenses for lodging, food, entry fees at tourist attractions, car or boat rentals, air tickets and the purchase of One Tambon One Product goods under the “Rao Tiew Duay Kan” (We Travel Together) program.
  • Benefits from tour operators for package tours or travel under the “Tour Tiew Thai” program.
  • Benefits from the purchase of products from Blue Flag stores or the purchase of services from co-payment scheme service providers under Phases 4 and 5 of the state welfare card program.
  • Benefits received by people who need special help for the purchase of products from Blue Flag stores or services from co-payment scheme service providers.
  • Oil subsidies received by motorcycle taxis.

Taxpayers are, however, required to submit their tax returns within March.

The income tax exemption will mean a tax collection shortfall of about 7.93 billion baht, according to Traisuree.