Smaller contraction for industry from stimulus

Thailand’s retail industry is likely to see a lower contraction this year to 6% from the previously projected 7.8% fall, driven by a host of stimulus measures.

Voralak Tulaphorn, chief marketing officer of The Mall Group, said the co-payment programme, and the Shop and Payback tax rebate scheme, in particular, have helped boost consumers’ spending power since October.

The co-payment scheme allows registered individuals who make purchases at small shops to pay for only half, with the government subsidising the other 50% of the receipt.

The government pays for 50% of food, drink and general goods purchases of up to 150 baht per person per day, capped at 3,000 baht per person for the duration of the scheme.

The scheme started on Oct 23 and will end on Dec 31.

The Shop and Payback tax rebate scheme, which runs from Oct 23 to Dec 31, allows taxpayers to deduct up to…