Prasong Poontaneat, director-general of the Revenue Department, said yesterday that the department would propose the extension of tax deductions for travel-related spending for two more years.

The tax break had expired last year.

The aim is to encourage Thais to travel more inside the country, which could give the local economy a welcome boost. Spending of up to Bt15,000 per year on travel can be deducted from personal income taxes.

Similar to duty-free shops, the pick-up centres can offer duty-free goods, but, depending on government policy, they may be located in other airports besides Don Mueang International and Suvarnabhumi, where King Power holds exclusive concessions from Airports of Thailand.

Those concessions end in four years.

The Fiscal Policy Office (FPO) has been assigned to review a proposal from the private sector for a reduction of duties on imported luxury goods in an effort to promote Thailand as a shopping centre for the region.

However, the impact on domestic operators must be taken into consideration, Kulit said.

Krisda Chinavicharana, director-general of the FPO, said the office would submit the proposal to the meeting as a measure to stimulate tourism and domestic spending.