Performers in Thai classical dance costumes parade to promote domestic tourism in Bangkok in November. The Finance Ministry plans a personal income tax incentive to boost local tours next year. (Photo by Wisit Thamngern)

The Finance Ministry will seek cabinet approval on Tuesday for personal income tax deduction for tourists’ spending on hotels and food in second-tier tourist destinations next year.

Prasong Poontaneat, director-general of the Revenue Department, said on Monday that under the proposal tourists would be able to deduct their spending of up to 15,000 baht on accommodations and foods from their taxable income next year and the Tourism and Sports Ministry would list the secondary provinces.

Interested taxpayers would be required to present only receipts of service providers instead of tax invoices because the earnings of operators in such provinces such as homestay and restaurant operators did not reach 1.8 million baht per year, a criterion for their value-added tax registration, he said.

The Revenue Department would lose some of the taxes to be collected next year but the measure would help redistribute incomes for rural people nationwide, Mr Prasong said.

News Reporter

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