Govt To Cut Income Taxes To Boost Economy

[george]

Govt to cut income taxes to boost economy

BANGKOK: -- The government next week will consider reducing the corporate and personal income taxes to stimulate investment and consumption, Finance Minister Suchart Thadathamrongvej said Thursday.

Mr Suchart said the Finance Ministry had already studied the tax restructuring, should the taxes be lower.

On the automakers' move to lower their production output and slash more jobs, the minister said the government will try to lessen the impact of the global financial crisis on the country's economic growth.

A joint committee of public and private sectors is expected to propose solutions to the sluggish economy, Mr Suchart added.

-- Bangkok Post 2008-11-20

[Plus]

They did a research on this. There will be massive revenue shortfall for the first couple of years, business growth is supposed to cover it by 2013.

I don't know if it't the right time to cut government revenues now. The country might face a serious export decline and bigger deficits next year, low taxes or not.

[OlRedEyes]

On the automakers' move to lower their production output and slash more jobs, the minister said the government will try to lessen the impact of the global financial crisis on the country's economic growth.

The penny hasn't dropped yet. The 'global financial crisis' is yesterday's news. Worldwide, real, economic recession (at best) is now the game.

[george]

Thai government mulls tax cut; tackle unemployment

BANGKOK: -- In a bid to cushion Thailand from the impact of the global financial crisis and the consequent economic slowdown, the government on Thursday moved to assess whether corporate and income taxes could be reduced, and to consider methods to lower unemployment in the country.

The government's decision to tackle the problems followed a meeting of the Joint Public-Private Committee, chaired by Prime Minister Somchai Wongsawat, and attended by economic ministers and prominent executives from the private sector.

Mr. Somchai told journalists after the meeting that his government would support the private sector as it felt that global financial crisis not only affected the Thai economy but tourism as well.

The government, he said, has assigned the finance ministry to determine the impact of possible corporate and personal income tax reductions, while the labour ministry is seeking measures to assist people laid-off from their jobs.

Mr. Somchai said the government would inject a Bt100 billion budget to stimulate the economy, in part through providing loans to small- and medium-enterprises.

Latest statistics by the labour ministry disclosed that 166 firms have terminated about 18,000 workers. Another 81 companies with 29,000 employees are expected to be affected later.

Finance Minister Suchart Thada-thamrongvech said Thailand's exports of automobiles will be affected as the purchasing power of consumers abroad declines. Other industries will follow suit, he noted.

Mr. Suchart's comments were made after press reports here said that General Motors (Thailand) will temporarily close its automobile manufacturing plant in the eastern seaboard province of Rayong in December and January as its parent company in Detroit is struggling to achieve a massive bail-out package from the US government.

-- TNA 2008-11-20

[CuttySark]

They did a research on this. There will be massive revenue shortfall for the first couple of years, business growth is supposed to cover it by 2013.

I don't know if it't the right time to cut government revenues now. The country might face a serious export decline and bigger deficits next year, low taxes or not.

So, do you suggest that Thailand should increase taxation? Especially now.

[animatic]

Can't tax what isn't there.

Massive tax cuts won't save jobs,

but being able to cover the unemployed has definite costs.

People who get fed, don't riot in the streets as often,

a big plus in most economies.

[satiariyan]

A safe bet to say the politicians will agree on the tax cut - they are among the chosen few that will benefit from it. As far as personal income tax goes income up to 20,000 baht is tax free (for regular employees) which mean that some large percentage (80%?, 90%?, 98%) in jobs won't notice the tax cut and I doubt any unemployment benefit will be above the tax free threshold. The tax cuts are to help those with a relatively high income - not to he help the unemployed.

[Plus]

So, do you suggest that Thailand should increase taxation? Especially now.

I suggest they discuss this issue with the public, and bring it to the parliament in the end.

Imagine what kind of massive debate it would have sparked in the US.

In Thailand they want to keep it all hush hush. Why am I suspicious? Do you really need to ask?

[Briggsy]

Thailand has a relatively high rate of corporation tax. Might they be losing investment to Malaysia, Vietnam, Cambodia, Phiippines, Indonesia and China due to it? I am afraid I don't know the corporation tax rates for these other competing countries.

[hammered]

Tax cuts and massive government expenditure plans could be an interesting mix.

[Ricardo]

Good to see that the impact of the global problems is now recognised as having some impact here too.

Now of only they could get Khun Tarisa, at the Bank of Thailand, to understand how her high-interest-rate/strong-Baht policy is hurting both exports and tourism, and reverse the strategy !

[ray08]

Good to see that the impact of the global problems is now recognised as having some impact here too.

Now of only they could get Khun Tarisa, at the Bank of Thailand, to understand how her high-interest-rate/strong-Baht policy is hurting both exports and tourism, and reverse the strategy !

Agreed i think the strong Baht ,high interest rate is the doing the most damage ,both for exporters like myself ,hit with high interest from Banks and strong baht for my customers to pay,And the tourism sector will also be bleading ,think an Oz tourist a few months ago changes Aud $ 2000 to spend on holidays here and has Thb 60 k to spend ,today even if he comes the same Aud $2000 will be only Thb 42K to spend ,effects everybody