Thai Companies Applaud Plan To Cut Corporate Income Tax

[webfact]

BUSINESS

Companies applaud plan to cut corporate income tax

By NALIN VIBOONCHART

PETCHANET PRATRUANGKRAI

THE NATION

The private sector welcomed the Revenue Department’s plan to cut corporate income taxes, saying the lower taxes would increase Thai companies’ competitiveness and make the country more attractive to foreign companies.

Ninnart Chaithirapinyo, vice chairman of Toyota Motor Thailand, said the company wholeheartedly supported the proposal to cut corporate income tax from 30 per cent to 18 per cent.

Under the department’s plan, Thailand will be more competitive than Singapore, where corporate income tax is 17 per cent.

Ninnart said that if there were any changes to the BoI’s investment incentives, the government might give more time to the private sector. The BOI could shift its focus to improving the one-stop service as a facilitator of foreign investment.

“Don’t forget that Asean will be liberalised in 2015, according to the Asean Economic Community agreement. So I don’t think the tax reform will affect the country by attracting foreign investors,” he said.

Dusit Nontanakorn, chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, also supported the proposal.

“The tax structure must be modernised. The government has moved on to the right path. Cutting the tax will promote business growth and draw more foreign investment into the Kingdom,” he said.

He said that although the move might cut government revenue, it could seek other revenue channels such as revising the BoI, privileges, as some of them were out of date.

The Revenue Department this week said that it would propose a package of tax reforms to Finance Minister Korn Chatikavanij early next year.

The package includes the corporate-income-tax cut and an increase in value-added tax. There is an option to remove tax privileges granted by the BoI. Currently, the board provides a maximum eight-year corporate-income-tax holiday to companies granted the privileges.

Dusit said the BOI should promote investment in border provinces and overseas as a priority.

This would solve the labour shortage, as investors would be able to employ foreign workers. The tax restructuring should also encourage enterprises to adopt more automation and encourage Thai enterprises to invest in Asean nations.

Moreover, the government can increase taxes for high-income people, including heritage and landlord taxes, to compensate for lower revenue from corporate tax, Dusit said.

Meanwhile, Dusit said Thais should stop dividing into different T-shirt colours, as it has destroyed the country’s growth.

“Asean is moving forward to the single market. Thailand could be left behind if we still have internal conflict,” he said, adding that anyone who has created problems in society should back off, as such divisive behaviour had damaged the country for too long.

BoI secretary-general Atchaka Sibunruang was cool to the proposed revision in the privileges, but urged the government to weigh the pros and cons, as the BOI is in charge of drawing foreign direct investment.

She said the investment incentive was one of the important factors foreign investors would consider before deciding whether to invest in the country. The other factors are political and economic stability and sufficient skilled labour.

She acknowledged that Thailand’s current corporate-income-tax rate of 30 per cent was the highest among Asean countries.

Many foreign investors complain about this. The incentives the BOI gives to foreign investors remain competitive, although some countries have tried to offer better privileges to compete with Thailand. And this is the BoI’s concern if the government removes the tax exemptions.

“If the government removes the tax privileges, the BoI’s duty in the future will be to focus on promoting investment in Thailand only,” she said.

Chairman of Joint Foreign Chamber of Commerce, Nandor von der Luehe, said the corporate-income-tax cut would benefit the business sector but the option to remove tax privileges granted by the BOI needs the government to consider if Thailand could still attract foreign investment after the removal.

-- The Nation 2010-11-20

[LaoPo]

".....cut corporate income tax from 30 per cent to 18 per cent."

Amazing Thailand.

LaoPo

[marquess]

Trickle down economics, it will be the poor that will have to suffer for this.

[billd766]

Trickle down economics, it will be the poor that will have to suffer for this.

Actually everyone in the country will suffer from it.

If VAT goes up the cost of everything that everybody uses will go up.

Food will go up because of the increase so will the cost of fuel to transport it so it will effectively go up twice.

Anything and everything will go up as businesses will need to cover their costs to keep their profit margins.

Salaries on the other hand probably won't go up as businesses will be bleating about the rise in VAT that they themselves are asking for to cut their costs thus they will say that due to the extra cost of VAT we can't afford to give the workers a pay rise.

BAU

Business As Usual

Edit for afterthought

The price for alcohol and cigarettes will probably go up as well

Edited November 20, 2010 by billd766

[Northman061]

So some Elites son who was slotted into a Government job decides, in conjunction with other highly placed elites sons, that their fathers, uncles and senior business partners should have even more money.

So they cut their tax.

Thats nice isnt it.

The idea that this will draw people to this fast becoming Burma 2 is stupidity beyond belief.

Why are Virgin, Nokia, Orange or Sky not knocking on Thailands 3 or 4G door?

Its because Thai Elites will not allow outside non Thais to own, run and manage "National" contracts and run Thailands Infrastructure projects.

Why?

Because they would be run honestly, to budget, no bribes taken or given, and when completed and up and running they would offer a better service at a lower price!

Imagine you have Billions to invest. Singapore or Thailand?

100% business ownership, no bribes, honest police, and easy streamlined efficient governmet and business friendly system, clean streets and 4G everwhere..........Or........yeh, i know you know! :jap:

[Cnxforever]

Trickle down economics, it will be the poor that will have to suffer for this.

The package includes the corporate-income-tax cut and an increase in value-added tax - meaning all of us will pay for it !

And I am sure they will come up with some more ideas how to make the Farangs pay for some of the tax shortages - most "services" like immigration fees have already been increased by several hundred % over the last few years.

The budget deficit for the year 2011 will be in excess of 4 % of GDP - responding to the opposition - the government says that extra budget is needed to solve the problem of income inequality and unfairness in society according to its road-map towards national reconciliation - what is this a bloody joke??

Reducing taxes for the corporate sector and burden everybody else with higher VAT to cover the shortfall ? This is how this government wants to solve income inequality and unfairness in society?

Of course it will be the poor who will be hardest hit again they - and everybody else - will see price increases with every purchase we make and every "service" we use - soon actual electricity will be the smallest factor on the "electricity bill".

If this country would not loose a good 30 % of tax income or more to corruption then Thailand would become more competitive - but of course why would corrupt politicians want to stop corruption?

[mccw]

This is a good economic move !!

Very far from the old days of Thais not want or allowing any forieng investments; this WILL bring more jobs, more skilled jobs; increase the long term wealth of the nation and be good for everybody.

A small rise in VAT of say a half or a percent will hardly be felt by most; since the poorer side and indeed most everyday bussiness such as Market trading etc happens in cash and off the books anyway it will have even less of an impact on those at the the bottom.

Actualy this will help those at the bottom as they might have the oppertunity to recieved training and earn more than the old poor occupations of unskilled labour.

Thailand has near full eMployment as it is. So much so that factories are now being advisided to locate near boarders because not enough labour available.

Thailand and Thais have never had it so good! Across all levels of society. The growth of the middle class is amazing over the last 15 years. The poor have More oppertunities than ever.

These moaning reds should consentrate on sending their kids to school and instilling a good work ethic rather than causing instability and sabotaging their own future because of their ignorance and greed. GREED it's not to say it's greedy to want to get out of poverty; it's meaning taking the polliticians money to make problems for your country rather than bettering yourself through hard work.

Lower corporate tax = more and better paid jobs = more money circulating in the economy = more commerce = more government revenue = more investment in infastricture, education and services = more equality of oppertunity

Trickle down economics, it will be the poor that will have to suffer for this.

Actually everyone in the country will suffer from it.

If VAT goes up the cost of everything that everybody uses will go up.

Food will go up because of the increase so will the cost of fuel to transport it so it will effectively go up twice.

Anything and everything will go up as businesses will need to cover their costs to keep their profit margins.

Salaries on the other hand probably won't go up as businesses will be bleating about the rise in VAT that they themselves are asking for to cut their costs thus they will say that due to the extra cost of VAT we can't afford to give the workers a pay rise.

BAU

Business As Usual

Edit for afterthought

The price for alcohol and cigarettes will probably go up as well

[mccw]

18% is the rate of business tax in th uk incase anyone thinks it's some crazy low number. 30% is way too high; but 8 years no tax is also too much ; gov do well to have maybe a 1 or 2 year tax break followed by a scaled increase ; or maybr an introductory rate of say 10% for 5 years.

[Northman061]

This is a good economic move !!

Very far from the old days of Thais not want or allowing any forieng investments; this WILL bring more jobs, more skilled jobs; increase the long term wealth of the nation and be good for everybody.

A small rise in VAT of say a half or a percent will hardly be felt by most; since the poorer side and indeed most everyday bussiness such as Market trading etc happens in cash and off the books anyway it will have even less of an impact on those at the the bottom.

Actualy this will help those at the bottom as they might have the oppertunity to recieved training and earn more than the old poor occupations of unskilled labour.

Thailand has near full eMployment as it is. So much so that factories are now being advisided to locate near boarders because not enough labour available.

Thailand and Thais have never had it so good! Across all levels of society. The growth of the middle class is amazing over the last 15 years. The poor have More oppertunities than ever.

These moaning reds should consentrate on sending their kids to school and instilling a good work ethic rather than causing instability and sabotaging their own future because of their ignorance and greed. GREED it's not to say it's greedy to want to get out of poverty; it's meaning taking the polliticians money to make problems for your country rather than bettering yourself through hard work.

Lower corporate tax = more and better paid jobs = more money circulating in the economy = more commerce = more government revenue = more investment in infastricture, education and services = more equality of oppertunity

Trickle down economics, it will be the poor that will have to suffer for this.

Actually everyone in the country will suffer from it.

If VAT goes up the cost of everything that everybody uses will go up.

Food will go up because of the increase so will the cost of fuel to transport it so it will effectively go up twice.

Anything and everything will go up as businesses will need to cover their costs to keep their profit margins.

Salaries on the other hand probably won't go up as businesses will be bleating about the rise in VAT that they themselves are asking for to cut their costs thus they will say that due to the extra cost of VAT we can't afford to give the workers a pay rise.

BAU

Business As Usual

Edit for afterthought

The price for alcohol and cigarettes will probably go up as well

Wow, for a senior member i feel you are waaaaay off target on this one.

Is it not the case over 65% of Thais have the most basic of education because they are the ones up at dawn working 7 days a week in the majority of Thailand which is agricultural?

They will get little if any change in their daily lives from the top Elites getting bigger tax breaks. They, sadly, will stil have their prices fixed by these Elite Bangkok businessmen.

The average (non Red)Thai city worker, usually gets around 10 to 20k and many work 6 days with no overtime or job security through formal contracts of service.

The basic right to challange malpractice at your work is basic at best (look at the number of years the cotton weavers too to get compensation for their illnesses).

The idea that these Elites who are raping Thailand of its assests will somehow develop training programmes, pay better wages and assist the poorest is seems a very simplistic and stunningly out of touch comment.

This nation lives by the simple code of Greed first, family second and crush the poor.

So i disagree with you 100%.

Cheers

[LaoPo]

This is a good economic move !!

Very far from the old days of Thais not want or allowing any forieng investments; this WILL bring more jobs, more skilled jobs; increase the long term wealth of the nation and be good for everybody.

A small rise in VAT of say a half or a percent will hardly be felt by most; since the poorer side and indeed most everyday bussiness such as Market trading etc happens in cash and off the books anyway it will have even less of an impact on those at the the bottom.

Actualy this will help those at the bottom as they might have the oppertunity to recieved training and earn more than the old poor occupations of unskilled labour.

Thailand has near full eMployment as it is. So much so that factories are now being advisided to locate near boarders because not enough labour available.

Thailand and Thais have never had it so good! Across all levels of society. The growth of the middle class is amazing over the last 15 years. The poor have More oppertunities than ever.

These moaning reds should consentrate on sending their kids to school and instilling a good work ethic rather than causing instability and sabotaging their own future because of their ignorance and greed. GREED it's not to say it's greedy to want to get out of poverty; it's meaning taking the polliticians money to make problems for your country rather than bettering yourself through hard work.

Lower corporate tax = more and better paid jobs = more money circulating in the economy = more commerce = more government revenue = more investment in infastricture, education and services = more equality of oppertunity

So, how do you think it's possible to create more jobs if Thailand has near full employment and no people to do those jobs ?

And, an -overnight- decrease of 30% to 18% coporate tax is absolutely absurd and will NOT draw more investments to Thailand overnight since large corporation investors from overseas know better ways to avoid (corporate) taxes than to be lured with a drop in corporate taxes from 30 to 18%.

Next to that, does anyone know HOW MUCH money is received now in corporate taxes; that must be many billions.

Who and where is the TAX-hole filled up ? Who's is going to make up for the 30 to 18% GAP?

LaoPo

[jucel]

This is a good economic move !!

Very far from the old days of Thais not want or allowing any forieng investments; this WILL bring more jobs, more skilled jobs; increase the long term wealth of the nation and be good for everybody.

A small rise in VAT of say a half or a percent will hardly be felt by most; since the poorer side and indeed most everyday bussiness such as Market trading etc happens in cash and off the books anyway it will have even less of an impact on those at the the bottom.

Actualy this will help those at the bottom as they might have the oppertunity to recieved training and earn more than the old poor occupations of unskilled labour.

Thailand has near full eMployment as it is. So much so that factories are now being advisided to locate near boarders because not enough labour available.

Thailand and Thais have never had it so good! Across all levels of society. The growth of the middle class is amazing over the last 15 years. The poor have More oppertunities than ever.

These moaning reds should consentrate on sending their kids to school and instilling a good work ethic rather than causing instability and sabotaging their own future because of their ignorance and greed. GREED it's not to say it's greedy to want to get out of poverty; it's meaning taking the polliticians money to make problems for your country rather than bettering yourself through hard work.

Lower corporate tax = more and better paid jobs = more money circulating in the economy = more commerce = more government revenue = more investment in infastricture, education and services = more equality of oppertunity

Trickle down economics, it will be the poor that will have to suffer for this.

Actually everyone in the country will suffer from it.

If VAT goes up the cost of everything that everybody uses will go up.

Food will go up because of the increase so will the cost of fuel to transport it so it will effectively go up twice.

Anything and everything will go up as businesses will need to cover their costs to keep their profit margins.

Salaries on the other hand probably won't go up as businesses will be bleating about the rise in VAT that they themselves are asking for to cut their costs thus they will say that due to the extra cost of VAT we can't afford to give the workers a pay rise.

BAU

Business As Usual

Edit for afterthought

The price for alcohol and cigarettes will probably go up as well

Wow, for a senior member i feel you are waaaaay off target on this one.

Is it not the case over 65% of Thais have the most basic of education because they are the ones up at dawn working 7 days a week in the majority of Thailand which is agricultural?

They will get little if any change in their daily lives from the top Elites getting bigger tax breaks. They, sadly, will stil have their prices fixed by these Elite Bangkok businessmen.

The average (non Red)Thai city worker, usually gets around 10 to 20k and many work 6 days with no overtime or job security through formal contracts of service.

The basic right to challange malpractice at your work is basic at best (look at the number of years the cotton weavers too to get compensation for their illnesses).

The idea that these Elites who are raping Thailand of its assests will somehow develop training programmes, pay better wages and assist the poorest is seems a very simplistic and stunningly out of touch comment.

This nation lives by the simple code of Greed first, family second and crush the poor.

So i disagree with you 100%.

Cheers

i agree. I may be wrong but i get the impression that the rich/elite in Thailand can't make enough money! It seems that they want to invest/reinvest as little as possible in people/equipment etc for maximum profit. Therefore any tax cuts will only fatten the wallets of a few at the top.

[mccw]

Thais are largly moving from agricultural And unskilled labouring jobs to semi skilled manufacturing and service jobs the cities. The old unskilled work is now being done by Burmese; you can see this all across the north.

So yes thailand has full employment but the point is with development the jobs Thai people do is changing and making them more wealthy and the country growing.

A Thai who once may of been a day labourer and made 60-100 bht per day or 3-5000 per month, can now get a job in a factory where they will be trained how to use machinery and earn 8000 up. Because of the labour shortage even the unskilled work is now paying 150 per day or more.

Office workers getting 10-20,000 per month is a great wage, unthinkable for most just a generation ago to even contemplate this kind of work.

For sure hours are long and employment laws arnt so stringent compared to the west but this is just a step on the way. It took the west a very long time to get where it is now. You can't expect a largly agrairian society to jump in to an industrialised service based economy Overnight. The rate of change is extreemly fast as it is.

Same as in the west, as labour become more valuable and more organised, as people become wealthier and more educated, through politics and protest more protections and standards will be put in place. This can be seen to already be happening and is a continueing process.

The idea that 30% to 18% leaves this vast gap that will forever need to be made up some how is a very simplistic one. With growth, tax revenues incease; so potensialy after a few years of growth and investment the total tax revenue from the 18% could well be more than the current 30% and if you take in to account the knock on effect of all those people earning and spending more it will be even better for thailands coffers. The incease in VAT will be a kinda stop gap so the initial reduction won't be too badly felt. This is a good time for such measures as the Asean free trade area is coming; Thailand needs to make sure it continues to win the investment over other countries.

My wifes familly and side of it who are still farmers and my travels through and life in northern thailand is only a small snippit of the whole ofcourse, but from what I see there are basically those famillies or parents that chose to sacrafice and struggle to educate their children and give em the best shot they can; like through not drinking and/ or working extra hard and saving it; even if it's only one kid who goes school and then uni gets a decent job and then they help take care those that sacraficed for them, they teach their kids to work hard, get on with their lives and take care each other...... And then there are those that blow most money on loa kow and lottery tickets, see education as a waste of time, dream of getting rich and look for the easy way, like sending their daughters off to catch a Falang or take money from mafia or corrupt politician to do terrible things. The first group are ofcourse the massive majority; the silent majority that just want to get on with their lives.

This government is introducing free education across the nation for the first time. New taxation like the introduction of progressive land tax and landlord tax will infact take money directly from the ellites which some claim the gov is in the pocket of. The pm is trying to create a sustainable wealfare system. Anyone who wants to see a stronger more prosperous Thailand, where the poor have greater oppertunity and living standards continue to rise, should support him.

There is much work to be done and much could be better but it takes time and is in the process. Thaksin to his credit did alot to progress things along the route that this gov is now furthering; encoraging investment, 30bht healthcare and such but unfortunately his greed got the better of him and his autocratic ways became too much; luckaly he was removed before turning the country in to a dictatorship. Now the choice is between a party with clear plans to develop the country and help the poor and a party of reprobates with no real policies, only chat about vague notions of injustice and wottnot.

Politics is ofcourse still very corrupt but I think kunn A is the only best man with a chance to start the slow process of trying to change the way it always has been.

[mccw]

On a side note. The high bht that everyones always so doom and gloom about; saying exporters are all going to go out of business etc;;;; lowering the tax rate will help ease the effect of the strong bht! !

The strong bht also enables Thailand to purchase proportionaly more petrol / oil per bht than previously, conteracting inflationary pressures.

The strong bht also enables Thai companies to buy assets and invest in other countries. Also infastricture projects and everything else involving imports of commodities will be much cheaper. 30% more bang for your buck than 2 years ago.

I think the government is doing a good job at balancing this tricky time to get the best out of the situation. I fear all this would be completely beyond PTP. They'd probably start another drugs war; eliminating all political rivals at the same time through extra judicial killings, scaring away all the tourist and investors; at the same time instigating some poorly thought out attempt to manipulate the currency and/ or blow billions of bht on poppulist policies of subsadising petrol and food.

Can I ask you other posters who are so sure these government policies are wrong; what would you surgest instead?

[LaoPo]

Thais are largly moving from agricultural And unskilled labouring jobs to semi skilled manufacturing and service jobs the cities. The old unskilled work is now being done by Burmese; you can see this all across the north.

You better check your facts about the labor forces in Thailand. You really have no clue:

GDP - composition by sector:

agriculture: 11.6%

industry: 43.3%

services: 45.1% (2009 est)

Labor Force - by occupation

agriculture: 42.4%

industry: 19.7%

services: 37.9% (2008 est.)

Labor Force:

38.43 Million (2009 est)

SO: 16.3 million people (out of 38.43 million = 42.4%) still work in agriculture but producing only a mere 11.6% of GDP

Concluding that the corporations - the industry- with 19,7% of the Labor Force, produce 43.3% of GDP and now get the absurd tax cuts with their Corporate Tax, down from 30 to 18%

Absurd, and as other posters already concluded these new tax cuts are making the rich and wealthy Thai families richer but do the poor Thai benefit; why doesn't the Governement cut taxes for the poor also ?

You tell me.

Numbers, percentages and statistics from CIA world factbook.

LaoPo

Edited November 20, 2010 by LaoPo

[mccw]

Don't get me wrong ; I'm not saying all red shirts are scum; many I'm sure are very nice people but have lost track of sense, beleive red gossip and media more than think about things for themselves and become caught up in it, like a kind of cult.

...............................

I just read the export report; Thailand is running a surplass ofmore than a couple billion dollars so no real need to worry about a little short term knock from lowering tax rate

[mccw]

I say "moving" from agriculture to industry and service; not "moved" ! I bet if you check the figures from 20 years ago you'll find about 70- 80% in agricultural employment as opposed to the current 40-50. This is an on going process.

I think it could well be you who have no clue sir! How much tax do poor people pay in this country? A big fat zero!! !

Farmers cerainly pay nothing; Market traders pay nothing; most small businesses pay nothing. Only company employees pay tax and if your earning enough to be paid a sallery rather than cash then your in to the ranks of the middle classes.

Thais are largly moving from agricultural And unskilled labouring jobs to semi skilled manufacturing and service jobs the cities. The old unskilled work is now being done by Burmese; you can see this all across the north.

You better check your facts about the labor forces in Thailand. You really have no clue:

GDP - composition by sector:

agriculture: 11.6%

industry: 43.3%

services: 45.1% (2009 est)

Labor Force - by occupation

agriculture: 42.4%

industry: 19.7%

services: 37.9% (2008 est.)

Labor Force:

38.43 Million (2009 est)

SO: 16.3 million people (out of 38.43 million = 42.4%) still work in agriculture but producing only a mere 11.6% of GDP

Concluding that the corporations - the industry- with 19,7% of the Labor Force, produce 43.3% of GDP and now get the absurd tax cuts with their Corporate Tax, down from 30 to 18%

Absurd, and as other posters already concluded these new tax cuts are making the rich and wealthy Thai families richer but do the poor Thai benefit; why doesn't the Governement cut taxes for the poor also ?

You tell me.

Numbers, percentages and statistics from CIA world factbook.

LaoPo

[mccw]

Corporation tax would cover service aswell as industry by the way; probably some of the agriculture aswell.

[Dah fahrang]

Wonder if Ireland's 'financial predicament' might have influenced this decision?

Europe bullying Ireland to raise corporation tax. Then a threatened - or realised, exodus of foreign corporations from Ireland looking for a new 'low tax' home?

Has Thailand got the scent of blood?

Telegraph, 21 Nov

[LaoPo]

I think it could well be you who have no clue sir.

How much tax do poor people pay in this country? A big fat zero!! !

Farmers cerainly pay nothing; Market traders pay nothing; most small businesses pay nothing. Only company employees pay tax and if your earning enough to be paid a sallery rather than cash then your in to the ranks of the middle classes.

If poor people, poor farnershardly make any money how can they pay any taxes?

If poor people are getting paid lousy money for their agricultural products how can they pay for taxes?

These farmers need to organize more...

Market traders pay nothing?

hmmm

LaoPo

[mccw]

Ireland Corp tax rate was about 7% which is pritty low, but they did very well out of it; irelands big problem was the property bubble; the eu is mainly bullying them in to raising it because the big play/ payers putting up the money for the loan don't like the competition.

I don't see the same business litteraly moving from Ireland to Thailand but the example of how low Corp tax rate attracts investment is there; Thailand has experience of what happens when a property bubble bursts so should hopefuly avoid such mistakes again, the banks also hold higher reserves and income is based on fees rather than speculative investment, so Thailand is actualy in a very strong position compared to many western countries, which is why money will continue to flow in to the country and the bht will keep on rising; 40 to the gbp by the end of next year I reckon; i'm transfering what I can now

Wonder if Ireland's 'financial predicament' might have influenced this decision?

Europe bullying Ireland to raise corporation tax. Then a threatened - or realised, exodus of foreign corporations from Ireland looking for a new 'low tax' home?

Has Thailand got the scent of blood?

Telegraph, 21 Nov

[mccw]

?

Check the numbers but just before the start of what became bloody protests did the government agree with the farmers union to buy rise at 14,000bht per ton ? This was way more than the 11,000 best price ever paid under mr t. The head of the farmers union even cane out and said no reason to protest as they got everything they asked for!

It's a free Market , hardly the government fault if the price doesn't mtch expectations; infact they regularly step in and pay over Market value to help the farmers out.

I agree the farmers need to organise more; they could be forming co-opratives and bulk buying to reduce costs, approaching the government to set up their own mills so they can break free of the rice barons. It's these rice barons; ie the millers/ traders/ storers; who are making fat profits and ripping off the farmers, not the government! This rice mafia are in bed with the redshirt leadership; they are the money behind the movement, other than Ts ofcourse, they're scared the government through education might errode their regional fiefdoms, farmers might actualy realise it's the local big man keeping them enslaved through debt, lending against future harvests and mandatory purchasing of expensive fertalisers, pestersides etc, might actualy realise they're fighting the wrong people! Maybe they should listen to the king and follow sustainable farming practices; no ones ever going to get rich of growing only rice.; feed themselves and family and sell what spare, save that money and growing up debt free, send as many kids to school as possible and maybe they can get a better job and take good care you when old or your kids can continue the farm and live a happy life with everything one needs; comes down to what u think u need I guess, the sustainable farming method coupled with healthcare provision gives u everything one technicaly needs to live, happiness comes down to your own mind, if u strive for happiness through material pocessions and your a farmer this government nor any other can realy help you.

Thaksin reached out to this material need; as do the local pua yai; giving out big loans that then get blown on truck, cell phone, tv etc ; trapping farmer in debt; but unneducated farmer is ooo soo grateful, think how kindness he give us money but not realise the sinister intent and concequences.

Did this government not cancel most or all of the farmers gov held debts? Did the gov also not set up the scheem where people with debt to local money lenders could transfer the debt to the gov and agree a better rate of repayment? These are policies that will and have really helped the poor.

What else would you suggest the government do? I would suggest gov lending money and expertise to co-opratives of rice farmers to mill their own rice. The farmers need to organise themselves for this to happen though; unless maybe the gov sent out teams to try and get people together themselves; or maybe the government could become the miller itself, nationalise the industry, but what with the problems of corruption and inefficientcy the last option would not be a good one I don't think.

So what do you propose?

Big farm subsadies like those in the European union? Could put more money in pockets but would be incredably costly.

I think the kings sustainable model is the only real workable solution and for those that want more wealth they could organise co-opratives etc like I said.

People need to help themselves in the end though; government can only do so much. Much that could be done on a grass roots level in a productive direction; but seems instead too many the lemmings are listening to hate speaches about elites in Bangkok , getting angry at the wrong people , and actualy sabotaging their own future by following an out of power ellites desperate attempt to regain the keys to the coffers.

Can u name any policies the PTP have to help the poor?

I think it could well be you who have no clue sir.

How much tax do poor people pay in this country? A big fat zero!! !

Farmers cerainly pay nothing; Market traders pay nothing; most small businesses pay nothing. Only company employees pay tax and if your earning enough to be paid a sallery rather than cash then your in to the ranks of the middle classes.

If poor people, poor farnershardly make any money how can they pay any taxes?

If poor people are getting paid lousy money for their agricultural products how can they pay for taxes?

These farmers need to organize more...

Market traders pay nothing?

hmmm

LaoPo

[LaoPo]

^^^^

mccw: sorry, your post is unreadable, so I refrain from reading and answering.

LaoPo

[mccw]

^^^

obviously can't think of anything intelligent to say.

…...

I suggest you re-read it and try to let go of your predujice and open your brain to the truth

[LaoPo]

^^^

obviously can't think of anything intelligent to say.

…...

I suggest you re-read it and try to let go of your predujice and open your brain to the truth

Agree; it's unreadable so there's nothing to say anything intellectual about your content.

I'm sorry and don't want to insult you but if book-writers would write the content in their books the way you write..nobody would buy their books.

I assume you're not a writer but at least you could try to make your content a little bit more accessible to the average reader with new sentences, dots, comma's etc.

LaoPo

Edited November 21, 2010 by LaoPo

[mccw]

Whatever mate; hide in such tactics if u must.

I've said my peice and you've got nothing to add , so may aswell call it a day.

I hope u atleast enjoy your ignorance and don't get too worked up about things;-) not good for the heart don't you know

[mccw]

I love the way u call full stops . Dots . ;:-)

[brahmburgers]

Does this mean Thai corporations might pay University interns more than 25 baht per day for their work?

Or Thai hospitals might give better than one 15 baht meal per 12 hour day to nursing interns who work 7 days a week changing bedpans?

and speaking of taxes, Thailand's rich still pay zero tax on their vast property holdings in the provinces, most of which have no title. By having no viable title on properties, there's therefore no tax. So it's advantageous for the rich to gobble up untitled land for very low prices and keep it untitled.

Meanwhile many of those same fat cats have businesses and estates which have indentured servants who are required to work at the premises all their waking hours, seven days a week. These young folks, mostly girls, aren't allowed to leave the premises without permission, and get paid less than peanuts. After deductions for lodging, meals, they clear about 100 to 200 baht per week. Slavery exists in Thailand. It not uncommon, particularly among Chinese-owned businesses - the same ones which are getting liberal tax breaks.

The only thing for certain here: the rich keep getting richer, and the poor are staying poor.

Edited November 22, 2010 by brahmburgers

[jayjay0]

This is a good economic move !!

Very far from the old days of Thais not want or allowing any forieng investments; this WILL bring more jobs, more skilled jobs; increase the long term wealth of the nation and be good for everybody.

A small rise in VAT of say a half or a percent will hardly be felt by most; since the poorer side and indeed most everyday bussiness such as Market trading etc happens in cash and off the books anyway it will have even less of an impact on those at the the bottom.

Actualy this will help those at the bottom as they might have the oppertunity to recieved training and earn more than the old poor occupations of unskilled labour.

Thailand has near full eMployment as it is. So much so that factories are now being advisided to locate near boarders because not enough labour available.

Thailand and Thais have never had it so good! Across all levels of society. The growth of the middle class is amazing over the last 15 years. The poor have More oppertunities than ever.

These moaning reds should consentrate on sending their kids to school and instilling a good work ethic rather than causing instability and sabotaging their own future because of their ignorance and greed. GREED it's not to say it's greedy to want to get out of poverty; it's meaning taking the polliticians money to make problems for your country rather than bettering yourself through hard work.

Lower corporate tax = more and better paid jobs = more money circulating in the economy = more commerce = more government revenue = more investment in infastricture, education and services = more equality of oppertunity

Trickle down economics, it will be the poor that will have to suffer for this.

Actually everyone in the country will suffer from it.

If VAT goes up the cost of everything that everybody uses will go up.

Food will go up because of the increase so will the cost of fuel to transport it so it will effectively go up twice.

Anything and everything will go up as businesses will need to cover their costs to keep their profit margins.

Salaries on the other hand probably won't go up as businesses will be bleating about the rise in VAT that they themselves are asking for to cut their costs thus they will say that due to the extra cost of VAT we can't afford to give the workers a pay rise.

BAU

Business As Usual

Edit for afterthought

The price for alcohol and cigarettes will probably go up as well

OK I am confused

You talk about Thailand being close to having no available workers so Corporations are urged to move to the boarders where they can get foreign workers. Well and good.

But then you say

"Lower corporate tax = more and better paid jobs = more money circulating in the economy = more commerce = more government revenue = more investment in infastricture, education and services = more equality of oppertunity

Seems counter productive to me. Considering the work force to fill these jobs according to you will have to come from out side the country the wages will go down. Why not just leave the situation alone it is apparently doing OK. If they want to attract foreign money make the country more attractive to tourism. That is a section of the economy that has a large enough work force so they will not have to bring in more workers.

Heard a rumor a few years back that a major shoe and athletic wear company was leaving Thailand for cheaper work force in China. Just a rumor never bothered to follow up on it.

Edited November 22, 2010 by jayjay0

[billd766]

^^^

obviously can't think of anything intelligent to say.

…...

I suggest you re-read it and try to let go of your predujice and open your brain to the truth

Agree; it's unreadable so there's nothing to say anything intellectual about your content.

I'm sorry and don't want to insult you but if book-writers would write the content in their books the way you write..nobody would buy their books.

I assume you're not a writer but at least you could try to make your content a little bit more accessible to the average reader with new sentences, dots, comma's etc.

LaoPo

I managed to read and understand most of it but I was brought up a long time ago and left school 51 years ago.

However I do agree with a lot of but in the end it mostly boils down to who can convince the farmers the best or the quickest.

I suspect that a promise of money now outweighs the promise of more in the future if you have to work hard and plan it properly.

The only reason that I can think of why there are not many co-operatives is that the farmers would have to go through the local pu yai baans who sometimes are either in cahoots with the middle men are they are the middle man.

The fact that in the longer term most people would be better off is not the same as more money NOW.

[Wavefloater]

Trickle down economics, it will be the poor that will have to suffer for this.

Actually everyone in the country will suffer from it.

...Anything and everything will go up as businesses will need to cover their costs to keep their profit margins....

I don't really understand this. If companies are keeping 12% more of the profits, doesn't that favour their profit margin and allow them an opportunity to lower prices instead -- pass on to the consumer some of the 12% less they are paying in taxes. (Not that they will, of course,)