Private sector requests PM to lower taxes

During a Joint Public/Private Consultative Committee meeting, chaired by Prime Minister Abhisit Vejjajiva, Thailand’s business sector Wednesday urged the Abhisit government to lower both corporate and personal income taxes, and the tourism industry asked for an additional budget of Bt30 billion for recovering the loss in the tourism sector during the recent political turmoil. These requests came in just the next day after the Thai Cabinet approved several measures in a move to boost economy.

The private sector requested the government to lower personal income tax through an increase in the amount of tax reprieve to Bt200,000 from Bt150,000 at present so that low- and middle-income earners will have more cash to spend. On corporate income tax, the private sector suggested it be lower to between 20-25 per cent from 30 per cent being collected now. In addition, the Tourism Council of Thailand had requested the prime minister to provide assistance amounting Bt30 billion for use in organising seminars and boost tourist destinations.

Mr. Amphon said a Joint Public/Private Consultative Committee at the provincial level would be established so that the private sector could air problems to the government.

Santi Vilassakdanont, chairman of the Federation of Thai Industries, said the private sector proposed additional short-term measures to jump-start the economy, while both medium- and long-term measures to improve competitiveness among the players in the sector should also be implemented urgently.

Mr. Santi said entrepreneurs are worried about rising unemployment in the country and the government ought to jointly help respond to the crisis.