Thai Nightlife Sector Sees Growth as Entertainment Tax Cut Extended Another Year

National —

On December 24th, 2024, Deputy Finance Minister Paopoom Rojanasakul announced that the Thai Cabinet had approved an extension of the reduced excise tax rate for entertainment venues, lowering it from 10% to 5% of revenue for another year.

The measure, set to take effect from January 1st to December 31st, 2025, is designed to support Thailand’s economic recovery and bolster its tourism sector.

This tax cut aligns with the government’s “Amazing Thailand Grand Tourism Year 2025” initiative, aimed at increasing tourism activity, distributing income to local communities, and attracting more international visitors. Affected businesses include nightclubs, discos, pubs, bars, and cocktail lounges.

Deputy Minister Paophum highlighted that the move would help operators reduce costs, improve liquidity, and encourage higher tourist spending. It is also expected to generate more jobs and drive growth in the hospitality and entertainment sectors, ultimately benefiting the broader economy.

Reflecting on 2024, the reduced tax rate led to significant gains: 1,511 new entertainment businesses registered, a 60.92% increase, and excise tax revenue from the sector rose by 31.24%.

Additionally, the number of operators able to sustain their businesses grew by 52.06%, showcasing the measure’s success in fostering economic resilience.

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Kittisak Phalaharn
Kittisak has a passion for outgoings no matter how tough it will be, he will travel with an adventurous style. As for his interests in fantasy, detective genres in novels and sports science books are parts of his soul. He works for Pattaya News as the latest writer.