The government’s “Khon La Khrueng Plus” co-payment scheme is expected to provide a lift for small restaurants and retailers, helping them thrive in a sluggish economy.
However, the Thai Wholesale and Retail Trade Association suggests the government should analyse data collected from transactions to develop better, sustainable measures to support small business operators in the future.
The co-payment scheme is set to run from Oct 29 to Dec 31.
Shops, retail stores, spas and even taxi drivers that are not registered as juristic persons are eligible to participate in the programme, as well as public transport operators and small juristic persons with an annual income not exceeding 1.8 million baht.
Thaniwan Kulmongkol, president of the Thai Restaurant Association, noted the economy is not in good shape, resulting in less money in people’s pockets.
She predicted a significant portion of the money from the scheme would be spent in the restaurant sector, helping eateries struggling in a stagnant economy.
BOON TO RETAILERS
Somchai Pornrattanacharoen, honorary president of the Thai Wholesale and Retail Trade Association, said the scheme should benefit small retailers that are treading water.
He said the money distributed through the programme would circulate through suppliers and related businesses, helping to stimulate the economy.
During the previous government’s 10,000-baht cash handout, some people used the funds to repay debts, which did not effectively stimulate economic circulation, said Mr Somchai.
This stimulus programme should be used during challenging economic circumstances, but over the long term he advised the government to focus on more sustainable measures to support small retailers.
“The government should use transaction data to analyse and design future policies that strengthen small businesses, such as appropriate tax policies or better sales platforms,” said Mr Somchai.
TOURISM BOOST
On Tuesday, the government announced a set of domestic stimulus measures, comprising five initiatives such as personal income tax deductions for domestic travel expenses and corporate tax deductions for seminars and training held in Thailand.
For personal income tax deductions, participants must provide invoices from accommodation or restaurants registered in the value-added tax system, dated from Oct 29 to Dec 15.
The first 10,000 baht of such expenses can be supported by either paper or electronic tax invoices, while the next 10,000 baht requires electronic tax invoices.
Mrs Thaniwan said this stimulus package would help restaurants that earn more than 1.8 million baht a year, which are not eligible for the Khon La Khrueng Plus scheme.
Deductions are capped at 1.5 times the amount spent in secondary provinces and one time expenses in primary provinces.
She said the scheme’s conditions are appropriate as they support restaurants in second-tier cities that have fewer business opportunities compared with eateries based in major cities.
Mrs Thaniwan estimated during this period, participating restaurants would experience a sales increase of about 20% due to the stimulus package compared with regular periods.