Thailand‘s cabinet has greenlit a significant tax reduction on alcoholic beverages and entertainment venues as part of a strategic move to bolster the country’s tourism sector.

Government spokesperson Chai Wacharonke confirmed the decision, highlighting the slashing of wine taxes from 10% to 5% and the complete elimination of taxes on spirits, previously set at 10%. Additionally, excise taxes for entertainment establishments will be halved from 10% to 5%.

However, these tax adjustments are set to be temporary, expiring by the year’s end, according to Wacharonke’s statement.

This development follows a recent extension granted in November for entertainment venues to operate until 4 am, a move aimed at attracting more tourists and catering to late-night revelers.

Addressing concerns about potential revenue loss due to tax reductions, Finance Ministry Permanent Secretary Lavaron Sangsnit assured in a separate briefing that any deficits would be compensated by increased tourism-related earnings.

Tourism stands as a pivotal pillar of Thailand’s economy, contributing significantly to the nation’s economic landscape. Last year’s statistics revealed that Thailand met its target of hosting 28 million tourists, generating a substantial 1.2 trillion baht in revenue, as per government data.

Looking ahead, Thailand is eyeing an ambitious goal of surpassing 35 million tourist arrivals in 2024. These tax cuts are seen as a strategic initiative to reinvigorate the tourism industry, positioning Thailand as an attractive destination amid evolving global travel trends.