|
|
thailand : Tax Exemption Approved for Health Spa Businesses |
 Tax Exemption Approved for Health Spa BusinessesThe excise tax for the spa industry will be cut from 10 percent to zero percent. The tax exemption scheme was approved by Finance Minister Korn Chatikavanij on October 12.
Director-General of the Revenue Department Areepong Bhoocha-Oom said that the decision came after Deputy Finance Minister Pruttichai Damrongrat had discussed spa services with spa operators, who called for assistance to enhance the competitiveness of Thai spa services in the international arena.
He said that the Excise Department was assigned to revise tax collection for this business. Spas to benefit from tax exemption will be those associated with health or beauty, and their quality standards must be certified by the Ministry of Public Health.
The Government has a policy to enhance the standards of Thai spa services and promote Thailand as an Asian center for medical and health promotion services. This will help boost the tourism industry.
According to Mr. Areepong, from October 2008 to August 2009, a total of 565 spas with sauna and traditional massage services registered with the Excise Department. Excise tax collected from these services amounted to 151.6 million baht. The Government will lose about 42 million baht annually from the tax exemption scheme for the spa business. The Excise Department is in the process of revising an announcement on criteria and conditions for the tax exemption scheme.
Thailand has earned a reputation as an excellent location for spa services in Asia. Bangkok is known as the “Spa Capital of Asia,” generating income through massage and beauty treatment services, thereby creating a sales channel for herb products used in spa treatment. Many spa centers here are renowned worldwide for their expertise and high-standard services, as well as the hospitality of their personnel, thus enhancing the country’s appeal as a favorite destination for vacations and restoration of health and beauty.
In order to promote and facilitate the growth of spa services, prototypes and operation manuals were developed to attract domestic and foreign investors. They offer information on how a Thai-style spa should be operated, complete with market and financial analysis, marketing plans, facility planning, spa programs, operation management, and interior decoration that may be incorporated in accordance with local regulations, technical methods, and cultural considerations.
Thai spa services have been increasingly popular worldwide. Statistics compiled in 2007 show that almost five million people visited Thai spas, 80 percent of whom were foreigners. The spa industry earned Thailand more than 10 billion baht in the same year. The amount rose to 15 billion baht in 2008.
|
|
| |
