The Ministry of Finance has approved plans to provide enhanced benefits under the Khon La Khrueng co-payment stimulus program for individuals who file tax returns.
Discussions are ongoing with the government team managing the co-payment initiative, which aims to boost the economy in the final months of this year, according to Lavaron Sangsnit, the ministry’s permanent secretary.
Originally launched during the COVID-19 pandemic, the Khon La Khrueng scheme subsidized half of consumers’ expenses on selected everyday goods up to a set limit, offering relief to households while injecting cash into the economy.
The proposed version of the scheme suggests that all Thai citizens will be eligible to participate, with the government covering 50% of the cost of the designated items. However, individuals registered within the tax system or those who submit tax returns could qualify for a higher subsidy of 60%.
There are approximately 11 million individuals registered for income tax, though only about 4 million of them earn a monthly income of at least 26,583 baht—the minimum income level necessary to pay taxes. Regarding the spending conditions, Mr. Lavaron indicated that they will likely remain similar to the previous scheme, though additional features might be introduced to make the project more appealing.
He clarified that while benefits may be greater for some, the scheme’s eligibility is limited to those within the tax system or filing tax returns—not exclusively those who pay taxes to the government.
Details about daily spending limits and the overall budget for the project have yet to be finalized. The new government, led by Bhumjaithai, has available funds of about 25 billion baht remaining from the previous administration’s stimulus efforts, which could facilitate rapid implementation. Future policy decisions will determine whether additional funding is required, with considerations about whether the entire budget should support this scheme or be distributed across other initiatives.
Prime Minister Anutin Charnvirakul confirmed plans to revive the Khon La Khrueng program, citing broad public support as a key reason.
Chaiyatorn Sricharoen, an analyst at CGI International Securities (Thailand), views the scheme as a quick, short-term economic stimulus ahead of the upcoming election, which particularly benefits small businesses. The previous version in 2021-22 excluded modern retail operators, though it remains unclear if similar restrictions will apply this time.
He described the co-payment scheme as a temporary relief measure rather than a fundamental reform, emphasizing that without complementary efforts to enhance productivity and sustainable income growth, private consumption could slow once the scheme concludes.