FTI buoyed by effects of Thai govt stimulus drive since August

[webfact]

ECONOMIC
FTI buoyed by effects of govt stimulus drive since August
Erich Parpart
The Nation


Apisak

BANGKOK: -- GOVERNMENT stimulus measures introduced since August have already boosted private sector confidence and investments should be spurred further after more measures are introduced to stimulate private ventures in two weeks, the chairman of the Federation of Thai Industries (FTI) said.

Supant Mongkolsuthree made his prediction yesterday at the FTI's internal meeting after Finance Minister Apisak Tantivorawong delivered his keynote speech.

"I have more confidence after hearing what the Finance Minister has told us at the seminar because the measures to help low-income earners and SMEs [small and medium enterprises] that have already been introduced will soon be followed, periodically, by added measures to stimulate investment," he said.

"The latest figures in terms of import contraction at around 20 per cent last month is something that is going on in every country because of the drop in oil and other prices so it does not truly reflect the willingness to invest," he added.

Apisak said more measures were on the way to stimulate private investment and they will be effective this year and next year only. Apart from the measures to support the real estate sector in two weeks and this round of measures, "most likely tax benefits", they will cover all types of businesses in all sectors and the benefits will be in a range that is almost similar but not more than the Board of Investment's privileges.

"Around 90 per cent of Thai businesses are SMEs that employ tens of millions of people, so if the SMEs are supported, there will be more cash flow and domestic consumption will gradually increase. If the government can find ways to help the agriculture sector in terms of falling crop prices, then the level of confidence will increase even further," Supant added.

Meanwhile, Apisak revealed that the ministry is considering providing back-tax exemption for SME operators who are willing to list within the tax system but are afraid of back taxes. The ministry would not look at their tax record but it would draft a law to regulate that if SMEs who have been given a chance still fail to pay taxes in the future. He said their record would be checked and their punishment doubled.

"There will be no amnesty… but we will not look backward. Nevertheless, if you commit future crimes, then we have a right to look back," he said.

Single business account

Prasong Poontaneat, director-general of the Revenue Department, revealed at another press conference yesterday that the measures to encourage SMEs to register within the tax system to support the National E-Payment scheme would come as a package along with measures to support the government's single business account idea.

The Revenue Department measures also include money to be spent on computers, software and accountants to create the single business account to reduce corporate income tax. These measures are expected to be submitted to the Cabinet tomorrow. The department has created easy-to-use accounting software and it has already distributed to 2,000 SME operators nationwide as a pilot project. The software will be made available on its website and other related agencies soon.

"We are satisfied with the measures not to look into back-tax because it will encourage more SMEs to enter the tax system and this will allow the government to provide help in the right place |that is really needed in the future," Supant said.

Source: http://www.nationmultimedia.com/business/FTI-buoyed-by-effects-of-govt-stimulus-drive-since-30271653.html


-- The Nation 2015-10-27

[waldroj]

Hold everything!

We are being told that government stimulus measures that were only introduced since August have already boosted private sector confidence.

What a stunning achievement, in the last two months the government has seemingly done more for the private business sector than it has for the rest of the country in 17 months of junta control – that is, boost their confidence!

Better still, investments should be spurred further after more measures are introduced to stimulate private ventures in two weeks.

Unfortunately, it appears to only be the dubious predictions of FTI chairman, Supant Mongkolsuthree.

I say unfortunate because I have grave doubts about these predictions, especially as I believe Supant has also got some key SME figures wrong!

He is reported as saying “Around 90 per cent of Thai businesses are SMEs that employ tens of millions of people”. Yet, my quick research suggested that Thailand’s 2.7 million SMEs account for 98.5% of total businesses, employing 11.8 million people or about 80% of the workforce.

So, although I would like to believe this article (and not what my stock broker keeps telling me about Thai investor confidence), I feel compelled to reject Supant’s predictions and assign this story to the propaganda category that The Nation excels at.

[phoenixdoglover]

Hello class! Today's word is "predicted".

Can you use this word in a sentence? Yes, Somchai...go ahead.

Yes, Teacher....The finance official predicted the economy will be better in the future.

Very good, Somchai! And so topical!