PATTAYA, Thailand – Thailand’s government is moving swiftly to stabilize the economy, revise personal income tax rules, and support households and businesses, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced.
The Ministry of Finance is preparing a new Medium-Term Fiscal Framework (MTFF) to ensure fiscal discipline, transparency, and clear rules, while restoring investor confidence after recent downgrades to Thailand’s credit outlook. A key part of the plan involves adjusting income tax deductions to make the system clearer and more structured, potentially combining savings and investment products into a single tax-deductible account, giving taxpayers more flexibility while setting a defined annual ceiling.
At the same time, the government is tackling household debt through an Asset Management Company (AMC) scheme. Ten billion baht from the Financial Institutions Development Fund (FIDF) will be used to buy non-performing loans from banks, managed by Sukhumvit Asset Management and Bangkok Commercial Asset Management, aiming for quick relief for affected households. Officials expect the AMC measures to be finalized by October.
Small and medium-sized enterprises (SMEs) will also benefit from expanded support. The government plans to provide liquidity through loan guarantees from the Small Business Credit Guarantee Corporation (SBCG) and facilitate partnerships with larger companies to integrate smaller firms into supply chains.
Innovation and research are another focus. The Ministry of Finance will coordinate with the Board of Investment (BOI) to provide up to 50% funding for research and development, helping businesses adopt new technologies. Small businesses can receive up to 20 million baht, and medium-sized firms up to 50 million baht, with banks providing initial financing to ensure the program runs smoothly.
Workforce development is also on the agenda, with a four-month upskilling and reskilling program targeting 100,000 workers to align labor skills with modern industry demands. The government will cover training costs, aiming to enhance workforce quality and competitiveness.
“Thailand faces multiple economic traps,” Ekniti said. “We have talked about the country being like a tiger, but now it is more like a patient that needs urgent care. If we act decisively, we can restore strength without ending up in the ICU. These Quick-Big-Win policies are designed to provide immediate stimulus while building long-term growth.”
The Finance Ministry expects to finalize the new tax deduction framework by November, signaling a stronger and more transparent fiscal policy to support economic recovery and investor confidence.
