Government meets to assist SMEs today



BANGKOK: -- The new economic team will propose several packages to assist small and medium enterprises to the cabinet meeting for approval today.

Newly-appointed deputy prime minister in charge of economic affairs Somkid Jatusripitak, head of the new economic team, revealed the assistance packages after a meeting with economic ministers yesterday.

Somkid said the measures consist of two phases.

The first phase measure aims to boost liquidity of SMEs.

Under this phase, public banks including Krung Thai Bank and the Government Saving Bank, will be convinced to lend more money to SMEs and government agencies will be guarantors for the loans.

He said this will also involve tax reduction to help SMEs cut operational costs.

The second phase aims to foster strength of SMEs, he said and noted that the Commerce Ministry and the Industry Ministry have been instructed to explore new online or e-commerce markets for SMEs.

The deputy prime minister stressed that the measures will not affect the government’s revenue collection.

At the same time, Finance Minister Apisak Tantiworawong revealed that the ministry plans to reduce tax to assist SMEs in important sectors.

This is aimed to enable SMEs to continue their business in future, he said, but declined to say the amount of budget to help the SMEs under this measure.

Source: http://englishnews.thaipbs.or.th/government-meets-to-assist-smes-today

-- Thai PBS 2015-09-08

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

Heh. This is *way* more fun than letting the kids watch Thai soaps...

Watching the attendants desperately trying to rearrange the deck-chairs, hoping against hope that'll stop the Titanic sinking.

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

And could be neither. The theory is that if you reduce the tax burden (the percentage of tax on net profit), the sales revenues of the SME's should increase, and that will result in no loss of tax revenues for RD. I'm not saying he will have success with that, but it's the economic theory that underlies the policy. It doesn't make him a complete idiot, but maybe an unrealistic optimist.

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

And could be neither. The theory is that if you reduce the tax burden (the percentage of tax on net profit), the sales revenues of the SME's should increase, and that will result in no loss of tax revenues for RD. I'm not saying he will have success with that, but it's the economic theory that underlies the policy. It doesn't make him a complete idiot, but maybe an unrealistic optimist.

Given the number of times this smoke and mirrors theory has been implemented in the West, without any fanfare later on of it's success, I presume it's amute point.

The only time in business, I have seen this approach work, is when companies hold 'sales' for whatever reason and then it's only the in a fraction of instances.

But I take your point he could be an optimist. Not a compelling enough virtue to hold his position.

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

If it's backed up with more rigorous tax collection and reduction in evasion, it will probably work

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

it does help in current poor economic climate. Helps struggling SMEs like mine to stay afloat and keep my staff employed. What maybe lost in corporate tax are recovered through revenue tax (VAT). Here is a somber statistic. 1,210 SMEs have applied for policy loan of which 876 are struggling and suffering from poor sales and face the prospect of closure.

"The second phase aims to foster strength of SMEs, he said and noted that the Commerce Ministry and the Industry Ministry have been instructed to explore new online or e-commerce markets for SMEs."

They will have to rely on people in Saigon to do the programming.

Most Thais who do on line commerce set up businesses on paper in Hong Kong and Singapore to avoid Thai taxes.

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

If it's backed up with more rigorous tax collection and reduction in evasion, it will probably work

But then a rigorous collection of taxes and reduction of evasion would probably make the money needed without reducing taxes and increasing incentives. This isn't USA or Europe, If the average disgustingly wealthy SIno-Thai had to pay the same rate of salary as in either place, they would not be quite so disgustingly wealthy.

I never have completely understood the adulation often received by thieves and cheats who have done so successfully and are rich, and who laugh great belly-laughs at the sycophants they all seem to have. A thief's a thief, whether he cheats low income earners or governments. Thai thieves tend to do both and its usually still not enough.

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

If it's backed up with more rigorous tax collection and reduction in evasion, it will probably work

But then a rigorous collection of taxes and reduction of evasion would probably make the money needed without reducing taxes and increasing incentives. This isn't USA or Europe, If the average disgustingly wealthy SIno-Thai had to pay the same rate of salary as in either place, they would not be quite so disgustingly wealthy.

I never have completely understood the adulation often received by thieves and cheats who have done so successfully and are rich, and who laugh great belly-laughs at the sycophants they all seem to have. A thief's a thief, whether he cheats low income earners or governments. Thai thieves tend to do both and its usually still not enough.

All very logical, alas, companies and individuals in Thailand just don't pay what they should.

Thailand tax take as a percent of gdp is one of the lowest in the world. They get exactly what they pay for. Crop govt.

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

If it's backed up with more rigorous tax collection and reduction in evasion, it will probably work

But then a rigorous collection of taxes and reduction of evasion would probably make the money needed without reducing taxes and increasing incentives. This isn't USA or Europe, If the average disgustingly wealthy SIno-Thai had to pay the same rate of salary as in either place, they would not be quite so disgustingly wealthy.

I never have completely understood the adulation often received by thieves and cheats who have done so successfully and are rich, and who laugh great belly-laughs at the sycophants they all seem to have. A thief's a thief, whether he cheats low income earners or governments. Thai thieves tend to do both and its usually still not enough.

All very logical, alas, companies and individuals in Thailand just don't pay what they should.

Thailand tax take as a percent of gdp is one of the lowest in the world. They get exactly what they pay for. Crop govt.

One might reasonably ask why the tax rate is so low. Someone has been looking after his mates and protecting his own cash flow.

It would appear Somkid is either an Economic Genius or a complete idiot. I know which my money is on.

QUOTE :He said this will also involve tax reduction to help SMEs cut operational costs.

The deputy prime minister stressed that the measures will not affect the governments revenue collection.

If it's backed up with more rigorous tax collection and reduction in evasion, it will probably work

But then a rigorous collection of taxes and reduction of evasion would probably make the money needed without reducing taxes and increasing incentives. This isn't USA or Europe, If the average disgustingly wealthy SIno-Thai had to pay the same rate of salary as in either place, they would not be quite so disgustingly wealthy.

I never have completely understood the adulation often received by thieves and cheats who have done so successfully and are rich, and who laugh great belly-laughs at the sycophants they all seem to have. A thief's a thief, whether he cheats low income earners or governments. Thai thieves tend to do both and its usually still not enough.

All very logical, alas, companies and individuals in Thailand just don't pay what they should.

Thailand tax take as a percent of gdp is one of the lowest in the world. They get exactly what they pay for. Crop govt.

One might reasonably ask why the tax rate is so low. Someone has been looking after his mates and protecting his own cash flow.

The rates aren't low. It's that it is treated as a negotiable guideline..

But then a rigorous collection of taxes and reduction of evasion would probably make the money needed without reducing taxes and increasing incentives. This isn't USA or Europe, If the average disgustingly wealthy SIno-Thai had to pay the same rate of salary as in either place, they would not be quite so disgustingly wealthy.

I never have completely understood the adulation often received by thieves and cheats who have done so successfully and are rich, and who laugh great belly-laughs at the sycophants they all seem to have. A thief's a thief, whether he cheats low income earners or governments. Thai thieves tend to do both and its usually still not enough.

All very logical, alas, companies and individuals in Thailand just don't pay what they should.

Thailand tax take as a percent of gdp is one of the lowest in the world. They get exactly what they pay for. Crop govt.

One might reasonably ask why the tax rate is so low. Someone has been looking after his mates and protecting his own cash flow.

The rates aren't low. It's that it is treated as a negotiable guideline..

And of course those who were awarded 'franchises' for a significant slice of the profits, are untouchable.

This situation the same everywhere with the 2 top "wants" by people is to own their own home and to be their own boss & for many this is, simply not true. Most have no idea of repair/replcement/maintenacs costs of a home and have no skills of their own & often lose or abandon the home.

Ditto for SME businesses opened July 1 and closed by August, no later then Sept for lack of proper

skills, little operating fund and knowledgeable competitiom who will use every trick to help force

your early failure.

Rent your residence and work for someone -- both are far more stress free !

What the Goverment really needs to do in order to offer assistance to these so called " SME,s " , is to issue them all with a " how to run a successful business fact sheet for Dummies ".

This would of course have the typical advise such as -

Only enter into a business that you know something about.

Dont buy a new phone to aid productivity, because it wont

Do not purchase a new pickup truck.

Only spend what the business can afford to spend without borrowing any money.

But heh! TIT, and there will probably be some kind of scheme for the business,s to borrow money from the Government at a lower rate for the first year, and there after at some kind of penalty rate.