The Thai Cabinet has approved a one-year extension of the reduced tax rate for nightclubs, discos, and entertainment venues, keeping it at 5% instead of the standard 10%. The extension will take effect on January 1, 2025, and continue until December 31, 2025.
Introduced in 2023, the lower tax rate has proven successful in driving additional revenue and formalizing the nightlife sector. The Excise Department reported a revenue boost of 139 million baht in 2023 due to the policy. For 2025, the government anticipates an even greater increase of 182 million baht, reflecting a projected 31% rise in revenue.
The measure has also encouraged greater participation in the tax system. The number of registered operators rose to 906 in 2023, and this figure is expected to climb further to 1,500 by the end of 2025, signifying increased formalization within the sector.
The Excise Department will work alongside the Department of Provincial Administration to monitor compliance and ensure that entertainment venues continue adhering to tax regulations.
This initiative supports the government’s broader economic strategy of stimulating tourism and boosting Thailand’s appeal as a vibrant, must-visit destination. By bolstering the nightlife and entertainment industry, the policy aims to attract international visitors and promote economic recovery while strengthening the country’s fiscal framework.
