March 4, 2008
BANGKOK - The cabinet approved a 40-billion-baht (1.3-billion-dollar) package of tax cuts and other measures to improve the sluggish economy, according to Finance Minister.
Finance Minister Surapong Suebwonglee said he hoped the package would help spur the economy to grow by at least six percent this year.
The economy rose 4.8 percent in 2007, ranking among the lowest in Southeast Asia.
"The tax cuts will help stimulate consumer spending and investments in the private sector, and the package is likely to drive the country's economic growth up to six percent," Surapong told reporters.
Under the package, Thais who earn less than 150,000 baht per year do not have to pay income tax.
Previously, the government's tax exemption ceiling was 100,000 baht per year.
Small and medium-sized firms earnings less than 1.2 million baht per year will also get the tax exemption over the next three years, according to AFP.
"I believe from now on that the public and investors will become more confident in the Thai economy. When consumers spend more, the government will be able to collect more value-added taxes," Surapong said.
Boosting the bearish economy is one of the top priorities for Samak government.
Surapong has vowed to restore investors’ confidence, which was battered after a coup in the September.
