Four areas targeted in stimulus package
The Thai Cabinet, at its meeting yesterday, has approved a stimulus package to ensure that the country maintains its 4.5% growth record. There are four areas targeted including private sector consumption, private sector investment, public sector spending, and exports.
The full press release as published on the Government Public relations website is as follows:
“Cabinet Approves Measures to Sustain Economic Growth in Four Areas (07/08/2013)
The Cabinet, during its meeting on 6 August 2013, approved a package of measures to sustain economic growth in four major areas following a proposal by the Ministry of Finance.
The four areas include private sector consumption, private sector investment, public sector spending, and exports.
Concerning private sector consumption, tax incentives are offered for the organizing of seminars in the country. Business operators will be able double their pre-taxation expenses for seminars organized for their employees for the 2013 and 2014 tax years. Relevant government agencies will be urged to organize trade fairs to sell energy-saving products, especially electrical appliances.
Regarding private sector investment, tourism business operators who buy or repair property, equipment, decorative items, and furniture, excluding vehicles, are entitled to a deductible fee of 50 percent on depreciation costs of the total assets in the first year. As for the remaining amount, payment may be made gradually for a five-year period in investment in the 2013 and 2014 tax years.
Investors interested in manufacturing eco cars may apply for the second phase of promotional privileges from the Board of Investment. Regulations will be relaxed for the establishment of food factories, sugar plants, and ethanol-processing plants. Operators of small and medium-sized enterprises will also be provided with easier access to funding sources.
Concerning public sector spending, the Government will accelerate disbursement in 2013 and 2014 fiscal years. Various government agencies will be urged to speed up their spending on training and seminars in the country by at least 50 percent of their budget allocations for the purpose within the first quarter of the 2014 fiscal year. They will be asked to organize seminars in various provinces nationwide, especially the provinces with good potential for being developed into tourism sites in the future.
Regarding exports, the Government will boost exports to ASEAN, particularly to Thailand’s neighbours: Cambodia, Laos, Myanmar, Vietnam, and small provinces of China. It will support the use of the baht in trading with neighboring countries. Regulations on possession of the baht across the border will be relaxed, as well, in order to facilitate border trade.
The Export-Import Bank of Thailand will play a more proactive role in reducing risks and providing financial liquidity for entrepreneurs wishing to do business and invest in neighboring countries.
In promoting tourist arrivals, multiple-entry visas for a period of several years will be granted before the high season in late 2013. Thailand will be given a major boost as a shopping paradise in order to attract more foreign visitors. Import duty exemption will also be granted for products that are attractive to tourists, without creating a negative impact on local manufacturers.”