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Thailand approves tax breaks to spur consumption

BANGKOK, Oct 12 (Reuters) - Thailand’s cabinet on Monday approved tax incentives to boost domestic consumption in a bid to revive an economy struggling from the impact of the coronavirus pandemic, the prime minister said.

The government will offer a tax deduction of up to 30,000 baht ($966) on purchases of goods and services from October to December, which is expected to inject 120 billion baht ($3.86 billion) into the economy, Prayuth Chan-ocha told a briefing.

Southeast Asia’s second-largest economy could contract by a record 7.8% this year, with the key tourism industry taking a beating, the central bank predicts. ($1 = 31.06 baht) (Reporting by Orathai Sriring and Satawasin Staporncharnchai; Editing by Martin Petty)