Restaurants urge review of Thai Chuay Thai Plus income cap

The Thai Restaurant Association and food operators in Chiang Mai are calling on the government to revise the eligibility criteria for the 'Thai Chuay Thai Plus' economic stimulus scheme, claiming that the current income cap has excluded numerous establishments and led to a sharp decline in sales.

Conversely, shops and eateries participating in the co-payment scheme have reported a significant boost in revenue from strong consumer spending.

Restaurant and eatery operators across several regions voiced their grievances yesterday regarding the impact of the scheme. Businesses are particularly frustrated by the entry condition, which limits participation to operators with an annual income of no more than 1.8 million baht.

The government implemented the threshold to ensure that financial aid is channelled directly to micro-operators and vulnerable small and medium-sized enterprises (SMEs).

In Chiang Mai, several large restaurants have reported a noticeable decline in customers compared with previous weeks.

Tanit Choomsang, president of the Chiang Mai Restaurant and Bistro Association, said that since the launch of the 'Thai Chuay Thai Plus' scheme on June 1, non-participating restaurants have experienced a 20-30% drop in sales.

Tanit urged the government to review the scheme's criteria and introduce supplementary relief measures, including targeted tourism promotions and tax incentives, to help cushion the food and beverage sector against intensifying competition and rising operating costs.

Data from the Chiang Mai association show that there are more than 10,000 restaurants and eateries across the province's 25 districts, with the majority concentrated in Muang district.

Many have been barred from joining the scheme because their revenue exceeds the regulatory limit, despite still being classified as small and medium-sized businesses.

In contrast, spending under the stimulus programme has been brisk during its first seven days. Consumers have turned out in large numbers to exercise their rights, significantly boosting revenues for participating vendors.

The most sought-after items have been food and daily consumer staples.

Meanwhile, Thaniwan Kulmongkol, president of the Thai Restaurant Association, has submitted a formal letter to the prime minister requesting an urgent review of the programme's rules.

She argued that the 1.8-million-baht annual income ceiling unfairly excludes a large number of small eateries that operate transparently within the formal tax system.

Thaniwan said some excluded establishments have seen their sales plunge by as much as 50% as customers shift to participating outlets.

She proposed that the government extend eligibility to restaurants earning between 2 million and 5 million baht a year. Such a move, she said, would ensure fairness, mitigate the financial impact on businesses and help safeguard jobs in the restaurant industry.

Businesses also stressed that the food and beverage sector is grappling with rising operating costs, including raw materials, wages and utility bills. Exclusion from the government's economic stimulus measures has added to their financial burden during an already challenging period.

Despite mounting criticism, the government maintains that the 1.8-million-baht revenue cap is necessary to ensure assistance reaches the most financially vulnerable micro-operators and small firms.

It remains to be seen whether the administration will respond to the private sector's calls by adjusting the criteria or offering alternative support measures.