The hospitality industry is calling on the government to extend a land and building tax cut that was enacted in June 2020, citing the continuation of the Covid-19 pandemic with no economic recovery in sight. They demanded that the 90% tax cut be extended for another 2 years, or failing that, enact another 70-80% tax cut to keep hotels afloat while tourism is only net in Thailand.
The chairman of the Thai Hotels Association has called for extending tax relief on land and buildings, saying current revenue levels in 2022 are still 80-90% lower than they were before the pandemic in 2019 The biggest tourist destinations are being hit the hardest as, without the steady flow of foreign tourists, markets are oversaturated with accommodation options, many of which pay premiums for property and building taxes due to their location. privileged.
“New tax rates, which affect hoteliers the most, must be postponed until tourism improves as tourist numbers have not increased significantly due to the about-face of the reopening.”
She referred to the Test & Go program launched in November that finally began allowing tourists to return to Thailand, only to be canceled less than two months later on December 22 when the Omicron variant hit Thailand. Additionally, the “We Travel Together” program which has fueled domestic tourism by offering subsidies on hotel stays, has yet to be revived, although the fourth phase is expected to begin in February and run until November. in September.
With revenues severely impacted, hotels are unable to afford costly taxes based on location, not income. If tax rates return to full cost, many hotels will have to take out loans or close operations. In addition to continuing the tax cut, hoteliers are calling on the Labor Ministry to extend wage subsidies to employees of small businesses, which provided 3,000 baht to help pay staff at struggling hotels.
SOURCE: Bangkok Post
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