Thai Cabinet nods to massive economic stimulus package

[webfact]

Cabinet nods to massive economic stimulus package
By English News



BANGKOK, Aug 7 – Thailand's cabinet approved a new stimulus package in response to the country's continued economic downturn and a last-ditch attempt to maintain Thailand’s economic growth at 4.5 per cent this year.

The package includes four major elements targeting consumption in the private sector, private investment, public sector spending and exports.

One measure offers tax incentives to private businesses organising seminars or workshops for their Thailand-based employees.

Business operators are entitled to double their pre-taxation expenses for seminar rooms, lodgings, management, transportation, food, trainers and equipment for the 2013 and 2014 tax years.

On incentives for the tourism business, the package authorises operators to purchase or repair property, equipment, decorative items, and furniture but excluding vehicles with a 50-per cent deductible fee on depreciation costs for total assets in the first year and gradual five-year payment for the remaining amount.

Investments in the 2013 and 2014 taxation years are entitled to the incentives.

Investors wanting to manufacture eco cars can apply for the second phase of privileges from the Board of Investment. The privileges apply to existing and newly-applied investors.

The private investment stimulus also includes the food processing and energy industries by providing more lenient regulations for opening factories for food, sugar and ethanol processing and manufacturing.

Small- and medium-size entrepreneurs will be given easier accessibility to loans under the Portfolio Guarantee Scheme of the Thai Credit Guarantee Corporation (TCG) within a budget of Bt240 billion, and the Productivity Improvement Loan of the SME Bank within a budget of Bt20 billion.

Smaller investors will be given easier access to loans without having to rely on money lenders.

Regarding spending in the public sector, the government will speed up spending in the 2013 fiscal year particularly in rural development projects which have been totally allocated Bt18.090 billion in this budget year.

As of July 26, only Bt7.817 billion, or 43.2 per cent of the total allocated budget, was spent.

Various government-operated funds including the Village and Urban Community Fund, SML Fund, Sufficient Economy Fund, Women’s Development Fund, Self-Reliance Fund and Energy Conversation Fund should quickly inject money into the economic system.

Government agencies are encouraged to speed up their spending on seminars nationwide so that they spend at least 50 per cent of the earmarked budget.

On export promotion, the economic stimulus calls for expansion of Thailand’s exports to neighbouring countries of Cambodia, Laos, Myanmar, Vietnam and various regions in China where market potentials are high and the Thai currency has been widely accepted.

Regulations of cash possession across the border should be relaxed to encourage border trade while the Export-Import Bank of Thailand (EXIM Bank) should be proactive in minimising risk and providing financial liquidity to private operators in their trade, service and investment in neighbouring countries.

On overseas tourism promotion, multiple-visa entry should be enforced before this year’s high season and Thailand should be upgraded as a shopping attraction for foreign tourists by giving tax exemption to items popular among tourists without negatively impacting Thai manufacturers. (MCOT online news)


-- TNA 2013-08-07

[chooka]

After the rice scheme do they have the funds? Aren't they trying to get loans worth trillions? If they want to increase exports then reel in the over inflated baht.

[notmyself]

On overseas tourism promotion, multiple-visa entry should be enforced before this years high season

Beats me.

[slapout]

Regulations for transport of cash across the border to be relaxed???? I guess the AMLO and agreements with other nations has put a crimp in getting untraceable funds out of the country. The transactions are getting hit with several handling fees, which may be approaching taxition rates which they refuse to pay.

Why is it every time the government proposes a influx of cash into the local economy, they seem to amend some of the safeguards that were put in place to counter money laundering???? When are the Thai's going to learn that you must have watchdogs with sharp teeth, and understand term sic'em, then add a penality of double (or more) of what has been lost to the public coffers?

[RisqEM]

I thought they had some big rice deals with Iran and a few other countries to help out? Watch the elite run off with the emergency fund when the time comes

[alant]

"On overseas tourism promotion, multiple-visa entry should be enforced before this year’s high season and Thailand should be upgraded as a shopping attraction for foreign tourists by giving tax exemption to items popular among tourists without negatively impacting Thai manufacturers."

Could someone kindly explain this to me?

[Bluespunk]

"One measure offers tax incentives to private businesses organising seminars or workshops for their Thailand-based employees."

Dear god, don't let my employers know about this. <deleted> no more workshops, please, i cant take any more of these useless events.

Edited August 7, 2013 by Bluespunk

[Bluespunk]

"The private investment stimulus also includes the food processing and energy industries by providing more lenient regulations for opening factories for food, sugar and ethanol processing and manufacturing."

Which regulations? Not health and safety I hope.

[Bluespunk]

"Thailand should be upgraded as a shopping attraction for foreign tourists by giving tax exemption to items popular among tourists"

What all items? Bar fine receipts will be required I guess.

[zydeco]

"The private investment stimulus also includes the food processing and energy industries by providing more lenient regulations for opening factories for food, sugar and ethanol processing and manufacturing."

Which regulations? Not health and safety I hope.

Must want to follow Chinese style regulations, I guess.

[Bluespunk]

"Smaller investors will be given easier access to loans without having to rely on money lenders."

Got to applaud that.

[Robby nz]

Do not these sort of things have to pass through (be debated by) parliament before being put in place?

Or can the revolving Cabinet just spend money with no checks and balances?

Wonder if any of these measures will benefit any of the cabinet members?

[SOTIRIOS]

.........'economic stimulus package'......a misnomer if I ever heard one....

[Thai at Heart]

Didn't they just give businesses a big boost by reducing their tax rate?

What are they trying to achieve? Incentives for hotels etc? I thought the hotels were full to bursting with all these overseas visitors

[chooka]

Didn't they just give businesses a big boost by reducing their tax rate?

What are they trying to achieve? Incentives for hotels etc? I thought the hotels were full to bursting with all these overseas visitors

They are, tourist numbers according to TAT are breaking records and at all time highs.

[indyuk]

Ha Ha Ha what a negative bunch of commentators the guys are today. I think there is not one positive remark so far.

Give her a break She, our 'Mighty Crab' is Doing her best to make the Thai economy acue new investment and a growing inpact in the regional mark.

I say good luck to her. At lest she seems to have more balls than most of you today.

I wish you all a happy and profitable day.

[Thai at Heart]

Didn't they just give businesses a big boost by reducing their tax rate?

What are they trying to achieve? Incentives for hotels etc? I thought the hotels were full to bursting with all these overseas visitors

They are, tourist numbers according to TAT are breaking records and at all time highs.

Exactly.

What is going on here/ The last I read, the GDP numbers were satisfactory, so what gives? The government needs to get hold of every baht it can to fund what it is planning to spend. How is giving all these tax breaks going to help?

[ginjag]

"One measure offers tax incentives to private businesses organising seminars or workshops for their Thailand-based employees."

Dear god, don't let my employers know about this. <deleted> no more workshops, please, i cant take any more of these useless events.

it's just the same as the bus trip for one day outing at school---never for the kids--for the teachers day out.

[ginjag]

Ha Ha Ha what a negative bunch of commentators the guys are today. I think there is not one positive remark so far.

Give her a break She, our 'Mighty Crab' is Doing her best to make the Thai economy acue new investment and a growing inpact in the regional mark.

I say good luck to her. At lest she seems to have more balls than most of you today.

I wish you all a happy and profitable day.

the BALL is in her court only, and family and friends of. Funny how you are among the 5% that are correct.

[OzMick]

Ha Ha Ha what a negative bunch of commentators the guys are today. I think there is not one positive remark so far.

Give her a break She, our 'Mighty Crab' is Doing her best to make the Thai economy acue new investment and a growing inpact in the regional mark.

I say good luck to her. At lest she seems to have more balls than most of you today.

I wish you all a happy and profitable day.

Right. Now if she would stop scratching her balls and start using what little brains she seems to possess, we might see some improvement.

It would also be nice if she would use the balls you suggest she has to end the rice scam. But while that would be economically rational, it would upset big brother and accelerate the loss of support now occurring - not much chance of that is there?

[Bluespunk]

Ha Ha Ha what a negative bunch of commentators the guys are today. I think there is not one positive remark so far.

Give her a break She, our 'Mighty Crab' is Doing her best to make the Thai economy acue new investment and a growing inpact in the regional mark.

I say good luck to her. At lest she seems to have more balls than most of you today.

I wish you all a happy and profitable day.

check post#12

[Payboy]

Just looking at the PM's pic in the papers every morning stimulates my package.

[OzMick]

I wonder if this pack of idiots has considered what will happen when they finally are forced to stop paying inflated prices for rice they cannot sell, and the Thai rice industry is faced with a glut and a large drop TO market price. If thousands of rice farmers are forced to realise that they can't make a profit, or even a living, growing it and stop, what happens to all the associated industries?

Even the Shinawatras are going to face an income drop when they can no longer charge inflated rents.

[khunken]

Ah Noddy at work again. Am I blind or did the article omit one very important fact?

How much.

[deecee10]

I know that there aren't too many icebergs in this neck of the woods, but I can't help feeling that the overcrowded long-tailed boat called the 'Thai tanic' is heading for a collision.

There will be the same mad unseemly scramble for safety as there was in 1912.

Govenment ministers and their families first.

Designer label water wings for her ladyship?

[billd766]

Ha Ha Ha what a negative bunch of commentators the guys are today. I think there is not one positive remark so far.

Give her a break She, our 'Mighty Crab' is Doing her best to make the Thai economy acue new investment and a growing inpact in the regional mark.

I say good luck to her. At lest she seems to have more balls than most of you today.

I wish you all a happy and profitable day.

So you are saying that this is the BEST she can do?

Really?

Please tell me what she has successfully achieved for the country and ALL its people in the last two years.

[Ricardo]

Thaksin Thinks, Pheu Thai Acts, Economy Slumps despite desperate last-minute efforts to boost growth. Yay !

[northernjohn]

Ha Ha Ha what a negative bunch of commentators the guys are today. I think there is not one positive remark so far.

Give her a break She, our 'Mighty Crab' is Doing her best to make the Thai economy acue new investment and a growing inpact in the regional mark.

I say good luck to her. At lest she seems to have more balls than most of you today.

I wish you all a happy and profitable day.

I think you are right she does have more balls. But they are not needed here brains are.

I definatly am not an economist but how does more investment in the country help the economy if it does not have the man power to do the work. Less than 1% unemployed and I bet if she could get enough money to double the size of the economy 1% would still be with out a job.

The only way I see it working is to attract people to move permanently to Thailand. What plans has she got to make it easier for people to get through immigration with the idea they are going to live and work here the rest of their work life. Seems to me there should be some way to make that easy.

A friend of mine had to let four of his Burmese employes go until they could get a work permit. They were here legally and had been working at other jobs with a valid work permit now they have to go and get a new work permit. Every time they change jobs it is back to immigration.