July 15, 2008
Bangkok - The government plans to introduce a new economic stimulus package which will include tax cuts to help the poor fight soaring inflation, according to finance minister.
The new measures will be announced after the weekly cabinet meeting today.
"I cannot reveal the details of this package because it needs approval from the cabinet meeting tomorrow. But the package will not affect individual income taxes or the value-added tax," Surapong said.
Prime Minister Samak Sundaravej will also elaborate on a food coupon project to help the poor as food and fuel prices skyrocket.
Inflation hit 8.9 percent in June, and official warned it could reach double digits this month.
The rice prices went up nearly 36% compared to one year ago while pork costs jumped almost 32 percent, according to commerce ministry.
The Bank of Thailand is expected to raise interest rates at its monetary policy meeting on Wednesday in a bid to rein in inflation.
The cabinet already approved a 40-billion-baht package of tax cuts and other measures to boost the kingdom's flagging economy in March.
The excise tax on E85 oil will surely be cut 0.50 baht per litre, according to Finance Minister Surapong.
