Prime Minister Srettha should listen to the experts on cash handout

[webfact]

In the lead-up to the 2023 general election, the Pheu Thai Party had campaigned on the slogan kid yai, tum pen, Pheu Thai took khon. The official translation of this slogan was think big, act smart, for all Thais. 

 

We have an abundance of evidence now that Pheu Thai and its predecessors were capable of thinking big. This is not a party for the timid policymaker. Thaksin virtually invented the playbook of economic populism in Thailand, and universal healthcare was realized under Thai Rak Thai, after all. But whether the party is acting smart, currently, is much more open for debate.

 

The major point of contention? Pheu Thai’s policy to hand out 10,000 baht to every person in Thailand above the age of 16. The backlash in which this promise has evoked is ferocious. Deservedly so. It is an ill-considered policy that has all the potential of becoming an unmitigated disaster. 

 

Handing out cash and putting them directly in the pockets of Thais is not a new concept, of course. The Abhisit Vejjajiva administration was probably the first to pioneer such a scheme with the Check Chuay Chart program, while the Prayut Chan-o-cha government’s Khon La Krueng scheme proved highly popular. The difference between those two programs and Pheu Thai’s plan is that both came as a response to economic crises — the Great Recession and the COVID lockdowns, respectively. With an economy already in recovery, what Pheu Thai’s policy is responding to is much less clear. 

 

by Ken Mathis Lohatepanont

 

Full story: THAI ENQUIRER 2023-10-12

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[bob smith]

silly policy that will bankrupt the economy.

 

where does he think the money is going to come from to finance it?

 

I wish you the best, Thailand.

 

Everything that will happen to you in the foreseeable future is of your own making.

Edited October 12, 2023 by bob smith

[bamnutsak]

Every day opposition to this scheme increases.

 

It will be interesting to see who blinks first.

 

Some talk yesterday about "the rich" being excluded.

 

I think Srettha is way out of his depth here, he - I think - really believes that this will stimulate the economy. And "believers", who are often wrong, are unwilling to compromise.

 

It will be easy to stall this, either via the legislature or the courts.

 

 

[jacko45k]

1 minute ago, bob smith said:

where does he think the money is going to come from to finance it?

Countries have been giving out free money for many many years... they are called benefits in the West. They come from taxes,,,,,, and coincidentally, Thailand appears to be dreaming up a few new ones of those!

[mikebell]

6 minutes ago, bob smith said:

where does he think the money is going to come from to finance it?

Farang pensioners bringing in their savings to help power the local economy.

[bob smith]

2 minutes ago, jacko45k said:

They come from taxes

I think its something like only 20% of the workforce pay Tax in Thailand, it could be even lower, perhaps someone can clarify that.

 

As for taxing farangs, yeah good luck with that. Enjoy the exodus when you try to tax the golden goose. Another harebrained idea that will backfire on them..

 

dont get me started on the tax kiosks at airports ???? 

[Mike Lister]

2 minutes ago, bob smith said:

I think its something like only 20% of the workforce pay Tax in Thailand, it could be even lower, perhaps someone can clarify that.

 

As for taxing farangs, yeah good luck with that. Enjoy the exodus when you try to tax the golden goose. Another harebrained idea that will backfire on them..

 

dont get me started on the tax kiosks at airports ???? 

Only 11% of the workforce pay tax, only 4% pay tax via the equivalent of PAYE. VAT is the biggest tax earner, followed by corporate/business tax.

[bob smith]

3 minutes ago, Mike Lister said:

Only 11% of the workforce pay tax, only 4% pay tax via the equivalent of PAYE. VAT is the biggest tax earner, followed by corporate/business tax.

thanks for the clarification mate! 

 

4% .... wow.

 

I hope srettha has a money tree in his garden cos its gonna take some serious shaking to get the required funds!

[Mike Lister]

2 minutes ago, bob smith said:

thanks for the clarification mate! 

 

4% .... wow.

 

I hope srettha has a money tree in his garden cos its gonna take some serious shaking to get the required funds!

Most people work self employed, few people have tax deducted at source, the question is how much of those earnings is declared to the RD, I think very little. My wife runs a business from home that turns over 1 mill per year. When she first went to register for tax and file her first return, the local revenue office used all sorts of tricks to keep her under the taxable limit, even to the point of creating a false tax declaration. This is the problem when the local tax office is staffed by people from the community you live in.

[proton]

He will probably put VAT up, we all pay that.

[bamnutsak]

37 minutes ago, proton said:

He will probably put VAT up, we all pay that.

I think VAT was 10% back in the '90s.

 

Since 1997 it has been lowered to and kept at 7% annually.

 

This figure was rolled over for "one more year" through 30 September 2024.

 

https://aseannow.com/topic/1306538-cabinet-agrees-to-keep-vat-at-7-for-another-year/

 

 

 

 

Chuwit claims that Srettha was adept at dodging taxes. And other sordid deeds.

 

https://tna.mcot.net/english-news-1217536

 

https://www.nationthailand.com/thailand/politics/40030328

 

 

 

 

 

Edited October 12, 2023 by bamnutsak

[Celsius]

1 hour ago, bob smith said:

where does he think the money is going to come from to finance it?

 

What a question. From the mugs doing 90 day reports, of course.

 

There is a 100 page thread about it.

[Celsius]

1 hour ago, Mike Lister said:

Only 11% of the workforce pay tax, only 4% pay tax via the equivalent of PAYE. VAT is the biggest tax earner, followed by corporate/business tax.

 

But only 1% is unemployed.

 

Hmmmm........

 

How interesting.

 

 

Funny math.

 

Every Farang mug should think about this if their bargirl should convince them to open a business or buy a property.

 

 

[Mike Lister]

2 minutes ago, Celsius said:

 

But only 1% is unemployed.

 

Hmmmm........

 

How interesting.

 

 

Funny math.

 

Every Farang mug should think about this if their bargirl should convince them to open a business or buy a property.

 

 

I should have written, only 11% file a tax return and pay tax, the remainder work cash in hand and/or don't earn enough to warrant filing a tax return. What those stats tell me is that the  grey economy and workforce here is massive and I think anyone who has lived here for a while knows that to be very true. People work cash in hand, that's it.

[Celsius]

3 hours ago, Mike Lister said:

the remainder work cash in hand and/or don't earn enough to warrant filing a tax return

 

A lot of street vendors make a killing especially in tourist areas and do not pay any tax

[hotchilli]

5 hours ago, webfact said:

Deservedly so. It is an ill-considered policy that has all the potential of becoming an unmitigated disaster. 

Srettha is thinking up ways for every man and dog to pay for this promise.. Expats included.

[ukrules]

VAT will inevitably go up, which government does it is up for debate.

 

They're in the debt building stage now though and it's all borrowed money.

[FlorC]

So , let's say 50 milj Thais get 10k ... that's 500 Billion THB or about 13 Billion euro .

That should be possible . 

[sirineou]

The title is

"Prime Minister Srettha should listen to the experts on cash handout "

Ok , I agree,good advice , and not only PM Sretta, but ev eryone should.

So I read more to see what the experts say, And.............

Nothing!!! it explained a bit what Srettha wants to do, said a bit of what others have done in the past.

And unless I missed it , nothing about what the experts say. 

So what is this Article? simply advice that he should listen to the experts. 

What makes the author think that he is not listening to the experts? 

[zzaa09]

9 hours ago, jacko45k said:

Countries have been giving out free money for many many years... they are called benefits in the West. They come from taxes,,,,,, and coincidentally, Thailand appears to be dreaming up a few new ones of those!

There's only some much true wealth to go around.

.....and after that this supposed wealth and subsequent economies become highly fabricated and falsified - relying largely on the deluded fantasies in which we seek. 

 

It's quite apparent that economies the world over use this practice as normalcy. 

[newnative]

    Seems like he is not listening to anyone, 'experts' or otherwise.  Giveaway scheme is awful, new tax proposals even worse.  Plenty of ways to raise revenue, starting with all the valuable land masquerading as 'farm land' with a few banana plants on it, avoiding bigger taxes.  Property taxes could also be raised moderately and bring in a lot more revenue.  I know we paid a pittance last year and I wouldn't have minded paying more if they laid off taxing my imported income as a tradeoff.

[sirineou]

1 hour ago, zzaa09 said:

There's only some much true wealth to go around.

.....and after that this supposed wealth and subsequent economies become highly fabricated and falsified - relying largely on the deluded fantasies in which we seek. 

 

It's quite apparent that economies the world over use this practice as normalcy. 

A different take on the subject

 

[jaywalker2]

Another dumb policy. They just can't help themselves. They learned nothing from the rice scheme and the other populist policies that wrecked the national budget and had no long-term benefits because Puea Thai thinks a 10,000 baht handout is going to make the people forget  how badly they've been betrayed.

[zzaa09]

1 hour ago, sirineou said:

A different take on the subject

 

As told by way of the establishment cabals - expect anything less?

Most are to easy. 

[natway09]

VAT does not collect as much as you think.eg:

If I buy for 80 Bht & sell for 100 Bht I pay VAT only on the 20 Bht margin Ie: 20 Bht.

If VAT was 10% that would only be 2 Bht.

If you wanna see where big money comes into Government have a look at what the breweries & 

spirit manufacturers pay in excise, importers of spirits & fags,  & even road tax receipts

[arithai12]

17 hours ago, mikebell said:

Farang pensioners bringing in their savings to help power the local economy.

I thought the main reason why farang pensioners bring in their savings or pensions is to enjoy a better life than back in their home country. I didn't know it is actually to help Thailand's economy, thanks for this insight.

[still kicking]

17 minutes ago, arithai12 said:

I thought the main reason why farang pensioners bring in their savings or pensions is to enjoy a better life than back in their home country. I didn't know it is actually to help Thailand's economy, thanks for this insight.

I moved back home and have a better life than I had in Thailand 

[fondue zoo]

Are these articles appearing all of a sudden so that they can walk back or water down this promise with less loss of pride.

 

 

[kwilco]

18 hours ago, bob smith said:

silly policy that will bankrupt the economy.

 

where does he think the money is going to come from to finance it?

 

I wish you the best, Thailand.

 

Everything that will happen to you in the foreseeable future is of your own making.

so expalin the process by which you think that will happen....

Edited October 12, 2023 by kwilco

[Mike Lister]

2 hours ago, kwilco said:

so expalin the process by which you think that will happen....

Government borrows more to pay for their financial incentives and public debt soars from the current 60% to over 80%. Borrowings have to be serviced, interest paid on the debt and the capital repaid which stresses budgets. The higher debt levels puts downward pressure on the Baht, imported oil costs them more so this results in higher borrowings, eg The Fuel Subsidy Fund debt which becomes unaffordable and is removed, costing consumers more and causing consumer debt levels to increase which in turn stresses the banks. A weaker currency results in exports earning less, that means less income for exporters and less money flowing into the Foreign Currency Reserves which begin to reduce. Budgets are reduced, services are cut, debt increases and the currency devalues itself under the strain.

Edited October 12, 2023 by Mike Lister