How Much Longer

[thailand_tom]

subsidize oil..you can see inflation starting to hit Thailand.... with oil at 130-135 and some say 200 a barrel..how long before Thailand has to pass the costs on to the consumer..the cost must be in the billions usd to the thai government to do this.

[PeaceBlondie]

tom, I think you have answered your own question. The government cannot afford to subsidize fuel costs. They did this a couple of years ago and had to quit. Besides, tax money comes from the people.

[TEFLMike]

PeaceBlondie, I

I agree.

However, there are many countries, the UK , for example, which are taxing the road users to the hilt. With yet more taxation, HIGH TAXATION increases and HIGH DUTY LEVELS, to come, anytime now. Those countries, can afford to lower prices. Could this be good for us, hee in Thailand? Whilst not reducing transporttion costs of western foodstuffs etc, it should certainly not, increase the costs?

Just a thought?

[thailand_tom]

tom, I think you have answered your own question. The government cannot afford to subsidize fuel costs. They did this a couple of years ago and had to quit. Besides, tax money comes from the people.

i see the baht now going to 32 to the dollar..do you think it will get back to 42 anytime soon..because of fuel prices or anyting else.

[jimmi]

The dollar was getting stronger. Then oil hit 120 and then 130. High oil prices with a weak dollar and more concerns about the U.S. economy, the dollar is on it's way back down. I would like to see the dollar back up 42 as well, but would be pleased just to see it hit 35.

[hanibal7]

inflation is hitting thailand.most things are increasing in cost.even my healthcare from aa has gone up from 11,700 baht to over 16,000 baht.i am looking around.

[Heng]

I'm glad the gov't can't afford their silly fuel subsidy program. It's a crutch that keeps people and businesses from toughening up to the real world.

[plachon]

PeaceBlondie, I

I agree.

However, there are many countries, the UK , for example, which are taxing the road users to the hilt. With yet more taxation, HIGH TAXATION increases and HIGH DUTY LEVELS, to come, anytime now. Those countries, can afford to lower prices. Could this be good for us, hee in Thailand? Whilst not reducing transporttion costs of western foodstuffs etc, it should certainly not, increase the costs?

Just a thought?

hee in Thailand? No, surely not, you must be mistaken.

[TEFLMike]

PeaceBlondie, I

I agree.

However, there are many countries, the UK , for example, which are taxing the road users to the hilt. With yet more taxation, HIGH TAXATION increases and HIGH DUTY LEVELS, to come, anytime now. Those countries, can afford to lower prices. Could this be good for us, hee in Thailand? Whilst not reducing transporttion costs of western foodstuffs etc, it should certainly not, increase the costs?

Just a thought?

hee in Thailand? No, surely not, you must be mistaken.

Sorry, May have misled. Good for us here in THailand? Was meant to refer to the high taxation on fuel etc, aiding lower cost transportation of goods, from the west, to Thailand,indeed. all ASEAN Countries?

Now Moi, is ascertaining confusion lol

[TEFLMike]

Sorry. I have worked all day without a lunch break

[lilBob]

inflation is hitting thailand.most things are increasing in cost.even my healthcare from aa has gone up from 11,700 baht to over 16,000 baht.i am looking around.

Pardon my ignorance but is that per month or year

lilBob

[PhilHarries]

Governments don't subsidise anything. It's the people's money, through taxation, that does the subsidisation. This means that every tax paying person is subsidising the fuel, and hence the food costs, for every person whether they pay tax or not. In an equitable society this would be a means of wealth redistribution to the poor but in Thailand, and other countries, it's often the most wealthy that are best at tax avoidance. However food and fuel are two of the essential basics and a rise in the costs of these commodities has a larger effect on the poor.

How long can they get away with it? With the current government's, and it's predecessor's, power base in the rural poor they can get away with it as long as they keep the costs of basic essentials down. The majority of tax is paid by the middle class who know what is going on but are powerless to do anything about it.