Thaksin Calls for Tax Cuts to Boost Thai Banking Liquidity

[snoop1130]

 

Former prime minister Thaksin Shinawatra has urged the Bank of Thailand to halve the withholding tax on commercial banks. Speaking at the “Dinner Talk Vision for Thailand 2024” event organised by Nation TV, Thaksin highlighted that reducing this tax would provide banks with the liquidity needed to issue more housing and car loans, thereby tackling the nation’s chronic household debt problem.

 

91% of Thai household debt comprises mortgages and vehicle leasing. Thaksin recalled a similar approach during his administration in 2001, where commercial banks eased retail loan restrictions. The government helped by purchasing non-performing loans (NPLs) from banks at half their book value.

 

In his speech, the former prime minister shared his observations since returning from a 17-year self-imposed exile. He noted a decline in the overall wellbeing of Thai citizens, attributing it to economic stress and reduced opportunities. Thaksin emphasised that many have resorted to superstition as a coping mechanism.

 

He criticised the current state of provinces, pointing out unclean towns and poorly designed constructions. Moreover, he raised concerns about the burgeoning underground economy, suggesting its legalisation could help alleviate debt issues. Thaksin also stressed the need for technological advancements in agriculture and industry to enhance the nation's global competitiveness.

 

Expressing desires for a responsive government, Thaksin criticised the bureaucracy for being oversized and inefficient. He has placed hopes on the new government to designate responsible leaders to address these pressing issues, aiming for a brighter economic future for Thailand.

 

The speech underscores Thaksin’s enduring influence and his continued vision for Thai economic and social reform, even after years away from the political spotlight.

 

File photo for reference only

 

-- 2024-08-23

 

 

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[phetphet]

28 minutes ago, snoop1130 said:

to issue more housing and car loans, thereby tackling the nation’s chronic household debt problem.

 

How does issuing more loans tackle the nation's debt problem? Surely that's what helped cause it in the first place.

[n00dle]

He is officially ruling the country, even the press has given up all pretence that the girl has any input.

 

Was she even in attendance while he established government policy?

 

As for vehicle leasing mortgages accounting for 91% of household debt, I say bull<deleted>-- unless they are not counting credit cards.

Edited August 23 by n00dle

[chiang mai]

14 minutes ago, phetphet said:

How does issuing more loans tackle the nation's debt problem? Surely that's what helped cause it in the first place.

This is a cash flow issue. If banks don't have income (that is money from their lending), they cannot pay for their liabilities (the money they must pay out). The cycle depends on people borrowing so that banks can lend, if they can't lend then nothing grows and the cycle comes to a stop....think 2008. If business doesn't borrow, because banks can't lend, business growth comes to a stop and there's no jobs. 

Edited August 23 by chiang mai

[Will B Good]

 

 

Have I missed a year out.....this is still 2024 isn't it.....how is he, banned from politics, not even elected ....running the show????

[John Drake]

Incredible!

[kickstart]

3 hours ago, phetphet said:

How does issuing more loans tackle the nation's debt problem? Surely that's what helped cause it in the first place.

A, was well known graffiti ,'You can now borrow enough to get completely out of debt".

 

Alot of debt is with the teachers, police, nurses ,or Thai civil servants ,it is time these government  departments ,stopped loaning money out ,as I see it must be taxpayers money ?..........i.e. Wifes niece a nurse, not yet 30 years old ,has just had implants in her teeth cost 100k, that is on top of the 1 million baht she borrowed less than 2 years ago to get married, she earns about 35k Bart /month.

[watchcat]

16 hours ago, snoop1130 said:

He noted a decline in the overall wellbeing of Thai citizens, attributing it to economic stress

 

That's because thai people in general can't handle money. Feel free to help them out with your billions of $.

[jippytum]

Coming from the crook who transferred his shares in Shin Corp to his driver before selling to avoid paying any taxes. 

[hotchilli]

20 hours ago, snoop1130 said:

Former prime minister Thaksin Shinawatra has urged the Bank of Thailand to halve the withholding tax on commercial banks. Speaking at the “Dinner Talk Vision for Thailand 2024” event organised by Nation TV, Thaksin highlighted that reducing this tax would provide banks with the liquidity needed to issue more housing and car loans, thereby tackling the nation’s chronic household debt problem.

Thaksin should be told to shut up and get his nose out of politics.. 

[hotchilli]

20 hours ago, snoop1130 said:

91% of Thai household debt comprises mortgages and vehicle leasing. Thaksin recalled a similar approach during his administration in 2001, where commercial banks eased retail loan restrictions.

Didn't Yinkluk do a similar plan, with new car owners getting a tax break?

[fondue zoo]

So the PM is looking after the grandchildren now?

[DaveBart]

Surely he should be now named as prime minister thaksin not former prime minister as he seems to be doing and deciding everything 

[nakhonandy]

It was a dinner speech, he wasn't announcing government policy. 

[TheFishman1]

The guy who fleas the country 15 years ago because he stole billions back in and his privately owned golf stream jet was probably around 65 million your term got from eight years to really know years he was supposedly in a hospital because he was so ill and he was coming back because he wants to spend a lot of quality time in the swimming pool with his grandkids really how can you make up this type of stuff? The real question is when will he let his sister come back with all drop charges of course does anybody know where the Red Bull kid is red notice that was probably never really sent what a comedy what a political Thailand TIT

[parallelman]

1 hour ago, nakhonandy said:

It was a dinner speech, he wasn't announcing government policy. 

Then why use a Thai economical stratergy as his topic? He could have talked his family and how he proud of his daughter etc. and even say that in his opinion Thai peole need more help. But If the words of the OP are accurate then he was clearly giving advice and laying out a stratgy. I just hope that the military don't see his words and deeds as interference and decide to do something about it.

[Dogmatix]

The OP doesn't specify what this withholding tax is.  Is the withholding tax on interest or some other tax.  Without knowing what tax is referred to makes the article meaningless.

[LukKrueng]

22 hours ago, phetphet said:

How does issuing more loans tackle the nation's debt problem? Surely that's what helped cause it in the first place.

This is exactly what he did 20 years ago, and basically tripled the average household debts of Thai people...

[connda]

Thaksin Calls for Tax Cuts to Boost Thai Banking Liquidity

 

Thaksin calls for measures to make the obscenely rich and wealthy, richer and wealthier on the backs of the poor and impoverished. 

There - fixed it! 

[connda]

22 hours ago, chiang mai said:

This is a cash flow issue. If banks don't have income (that is money from their lending), they cannot pay for their liabilities (the money they must pay out). The cycle depends on people borrowing so that banks can lend, if they can't lend then nothing grows and the cycle comes to a stop....think 2008. If business doesn't borrow, because banks can't lend, business growth comes to a stop and there's no jobs. 

Did you notice how after 2008 the banks stopped paying interests on bank accounts at the same time as they charged usurious rates for unsecured loans.  Usury is still alive and well in the banking sector and allow by most governments. 

Banks should be allowed to go bankrupt.

[scubascuba3]

Maybe increasing bank interest would improve liquidity, currently rates are garbage

[nakhonandy]

41 minutes ago, parallelman said:

Then why use a Thai economical stratergy as his topic? He could have talked his family and how he proud of his daughter etc. and even say that in his opinion Thai peole need more help. But If the words of the OP are accurate then he was clearly giving advice and laying out a stratgy. I just hope that the military don't see his words and deeds as interference and decide to do something about it.

Because that was the basis of the dinner, not family relationships. 

The military will read what they want as they always do, the last coup was totally unnecessary but suited their needs at the time.

[chiang mai]

3 minutes ago, connda said:

Did you notice how after 2008 the banks stopped paying interests on bank accounts at the same time as they charged usurious rates for unsecured loans.  Usury is still alive and well in the banking sector and allow by most governments. 

Banks should be allowed to go bankrupt.

That was a function of interest rates which haven't been over 2.5% since 2013.

 

 

[watchcat]

14 hours ago, nakhonandy said:

It was a dinner speech, he wasn't announcing government policy. 

 

You think??

 

[BangkokReady]

Cut taxes, increase subsidies, more loans.  This isn't going to end well.

 

Wasn't it robbing from the rich and giving to the poor that got him in trouble the first time?

[daveAustin]

On 8/23/2024 at 11:55 AM, Will B Good said:

Have I missed a year out.....this is still 2024 isn't it.....how is he, banned from politics, not even elected ....running the show????

Umm, This is Thailand? 😋
 

Tell you what, he’ll be an anti-hero if he says Taxin (I’m a poet and don’t know it) the expats is vile and wrong. But we all know he hates us and that’ll never happen. 

[john donson]

let me guess... he must have major stock... just like his friend that forgave him for his unkind words

 

tell me one reason, interest paid by banks is so low here but they charge double or tripple for a mortgage compared to home countries that pay double interest to savers...

[h90]

On 8/24/2024 at 4:01 PM, connda said:

Thaksin Calls for Tax Cuts to Boost Thai Banking Liquidity

 

Thaksin calls for measures to make the obscenely rich and wealthy, richer and wealthier on the backs of the poor and impoverished. 

There - fixed it! 

 

Yes if he wants to help the poor, remove the tax on food. But I guess first help the banksters, than the poor.

[Seppius]

He is looking well, let's watch how quick he shuts down the weed trade

[Sydebolle]

Well, the latest addition to funny ideas was to tax retirees on their pension payments. Given the fact, that most retirees spend (much) more money than what the average Thai books as income, it remains questionable, if that financially attractive cake needs to be cut up in different slices now. 

If the government, in its endless greed and need for submarines, F16s and other completely out-of-this-world ideas wants to cream off the icing on the cake ............ or ............ if all those retirees rather spend the same amount of money with the average Thai citizen in shops, restaurants, hotels etc. Needless to say, that the answer is the latter but given the present state of affairs those in the driver's seat simply could not care less about their tax paying underlings. 

Just beware of not killing yet another goose laying golden+ eggs ......... they did it with blocking the visa runners back in the day who must have also spent more money than the average Somchai. 

This country is in dire need of a complete revamp and proper spring cleaning with sand blasters and more .........